SCT Logistic’s bond issuance is ‘dual issue’ in that it comprises a Series A component of $30 million in four-year floating-rate notes, and a Series B component of $45 million in six-year fixed-rate notes.
The company’s founder and chairman Peter Smith said the funds would be used to pay down SCT Logistic’s existing debt, as well as to diversify its funding sources.
“This gives us greater certainty to plan our operations and invest over the medium to long term. As a private company, the ability to access a new investor base via the debt capital markets is a real competitive advantage, reinforcing the scale and pedigree of the SCT business,” Mr Smith said.
The bonds will have a minimum initial investment of $50,000 at issue and will be distributed to new and existing FIIG Securities clients who qualify as sophisticated or professional investors.
FIIG chief executive Mark Paton said the offering was “further evidence of the growing awareness among Australian corporates that a bond issue was a reliable funding option”.
“This is a very positive development because it recognises that private companies such as SCT Logistics can access the Australian bond market, reinforcing the maturity of the market and servicing the diversification needs of both investors and issuers,” Mr Paton said.
The SCT Logistics bond issue is the fifth that FIIG has arranged in 2015, following successful issues by CML Group ($25 million), MoneyTech ($25 million), McPhersons ($60 million) and Dicker Data ($40 million).
