Coffey said the bond offering will increase the tenure of its debt maturity profile and diversify its debt funding sources.
The bond offering will only be available to eligible professional and sophisticated investors.
Coffey International managing director John Douglas said the bond offering is in support of Coffey’s focus on debt reduction, which has seen gross debt fall from $88.7 million in June 2013 to $77 million this year.
“Driving down debt was one of our key achievements in FY2014 and we are committed to building on this strength,” said Mr Douglas.
The bond issue will deliver a more balanced debt profile managed over a longer timeframe, he said.
“It diversifies our funding sources and gives us greater certainty over the short to medium term,” Mr Douglas explained.
“Together with our recent return to profit, this gives us the right base on which to grow when opportunities emerge.”
FIIG Securities has been appointed by the company to assist with the offer. Mark Paton, FIIG Securities' chief executive officer, said the bond offering is “another positive development for the expanding Australian bond market for mid-sized corporates”.
