Tuesday 06 February 2018 by FIIG Research At FIIG

New FIIG originated bond issue – CF Asia Pacific Group

New Issue – Last week, CF Asia Pacific Group launched $65m offer of secured subordinated amortising notes


The issuer

CF Asia Pacific Group Pty Ltd (CFAP) is the largest provider of tailored locomotive and rolling stock leasing solutions to rail operators and shippers in Australia.

CFAP is the dominant rail freight leasing company in Australia with an experienced management team and 120 employees. It has a long track record of delivering quality leasing and maintenance solutions.

The company services a broad and loyal customer base, including some of the largest logistics and infrastructure companies in Australia (as shown), with a long history of rolling lease contracts.

CFAP benefits from high barriers to entry largely attributed to the long standing relationships it has with its customers and the significant capital investment required to mirror its operations.

Rail freight is experiencing growth from government initiatives to build national rail infrastructure and expansion of the agriculture / aggregates export sector. With a multi-purpose fleet, CFAP is well positioned to capture this demand, allowing the group to diversify both its customer base and industry sector revenue mix.

For more information about CFAP please visit their website www.cfasiapacific.com.au.

The offer

On 1 February 2018, CFAP launched the issue of a secured subordinated amortising note (“New Notes”) with a maturity date of 30 November 2020, and a fixed interest rate of 8.35% per annum. The New Notes are payable quarterly in arrear, available exclusively through FIIG Securities.

CFAP is seeking to raise A$65m to refinance existing debt and for general corporate purposes.

The New Notes are available to wholesale clients only with an initial minimum subscription of A$45,800*.


Terms
Issuer CF Asia Pacific Group Pty Ltd
Type of security Secured subordinated
Coupon 8.35%
Maturity 30 November 2020 
Offer size $65,036,000 
Minimum initial investment A$45,800 

*being 50 Notes issued with an outstanding principal amount of A$916 each, and increments of A$916 (being a denomination of $1,000 per Note, each with a bond factor of 0.916) thereafter

 

For more information, please call your FIIG representative on 1800 01 01 81. 


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