FIIG Closes New Corporate Bond As Axsesstoday Adds $30 Million To Fund Continued Growth
ASX-listed specialist finance group Axsesstoday Limited (ASX:AXL) has closed oversubscribed a new $30 million Note offer as part of its strategic debt diversification plan.
It will also fund the continued growth of the company’s underlying equipment financing business, which has more than tripled in the last 18 months.
This is the third time Axsesstoday have issued into debt capital markets, and the first since the company listed on the ASX in December, with all issues being arranged by FIIG Securities Limited.
The $30 million Series 2 Medium Term Notes pay a fixed coupon of 7.50% p.a. quarterly in arrear and are due on 22 June 2021. The Notes provide a third layer of debt into Axsess’ capital structure and will rank in priority to the existing $40 million Subordinated Notes due 9 October 2021, and behind their current bank facilities.
The issue was available to FIIG’s client base of Wholesale and Sophisticated Investors only.
Axsesstoday is a Melbourne-based specialist provider of business and operational critical equipment funding to small-to-medium size enterprises through accredited distribution channels in hospitality and other niche sectors.
Since Axsesstoday began originating leases, it has grown its net leases to $89 million as at 31 December 2016, compared to net leases of $27.5 million in October 2015.
FIIG Securities Head of Debt Capital Markets John Ricciotti said Axsesstoday’s strong credit profile, combined with its listing on the ASX made it an attractive proposition for clients.
“As a lender itself, Axsesstoday understands the importance of diversification and debt duration and we are confident this series of Notes will help underpin their future business success.”
“This type of issuance is ideal for unrated non-financial sector and we expect demand to continue to grow through the year.”
Other financiers to conduct successful bond issues through FIIG include: StockCo Australia ($47m), CML Group ($65 million), MoneyTech Finance ($25 million), Cash Converters ($60 million), and Silver Chef ($30 million). This is the 37th bond that FIIG Securities has originated bringing the total raised to over $1.6 billion.
Axsesstoday Limited CEO Peter Ferizis said the Notes were an important part of the company’s overall funding structure as it entered a new phase of growth as a public company.
“To have access to debt markets, traditional bank debt facilities, equity markets and our own cash flow provides us with a diverse range of levers to draw on as we add to our asset base,” he said.
FIIG Securities Limited, which is licensed by the Australian Securities & Investments Commission (ASIC), is Australia’s largest specialist fixed-income dealer.
FIIG has more than $11 billion in term deposits and corporate bonds under advice in its short-term money market, bonds and custody business. The company has Offices in Sydney, Melbourne, Brisbane and Perth. For more information about FIIG Securities please visit www.fiig.com.au.