FIIG Securities announced the completion of its second major corporate bond offer, with the closure of a $50 million, five-year, 7.25 per cent fixed rate, unrated wholesale bond for Mackay Sugar.
The order book opened to general offer on March 20, closing that afternoon. FIIG was sole lead arranger for the issue. For Mackay shareholders and growers, the offer remains open.
The issue is the second of its kind in Australia, according to FIIG. It follows a similar $30 million bond issue arranged by FIIG Securities for equipment financier Silver Chef Limited in August 2012.
"This type of corporate bond has been out of reach for smaller, unrated companies in the past," said FIIG Securities chief executive officer Mark Paton.
"With Silver Chef and Mackay Sugar we have proven there is strong demand from buyers coupled with considerable benefits for the issuer in terms of improving the diversity and tenor of their overall funding arrangements."
The bond will be free to trade in the secondary market without an early redemption penalty, according to the announcement.
