Specialist equipment funder Axsesstoday (Axsess) today announced the launch of a $20 million unrated bond issue. Axsess is a private finance company which provides commercial equipment finance to companies, typically in the hospitality sector
The issuer
Axsess is a private company which provides commercial equipment finance to small businesses via a distribution channel of retailers. Axsess is mainly focused on the hospitality sector.
Where main competitors market directly to end borrowers under their own brands, Axsess’s key differentiating factor is that it provides a ‘white label’ offering to retailers able to brand the financing with their name.
The receivables book has a low level of concentration and industry leading arrears rates.
Bondholders benefit from a secured second charge over the issuer, with funding restricted to 85% of the value of eligible assets and credit enhancements requirements increase if loan arrears trends above typical industry levels.
For more information about Axsess please visit their website www.axsesstoday.com.au.
The offer
A.C.N. 603 303 126 Pty Ltd (ABN 98 603 303 126) ("Axsess") to issue A$20,000,000 of medium term Notes, guaranteed by its parent A.C.N. 603 323 182 Pty Ltd (ABN 50 603 323 182) and certain subsidiaries.
Axsess has announced today the issue of a six year, secured, subordinated, floating rate, medium term note issue ("Notes") benefiting from a secured second ranking charge over the issuer.
Axsess is seeking to raise $20m in medium term notes to pay down existing debt and fund ongoing asset origination. The Notes offer a floating return (paid quarterly) of 3m BBSW +6.50% p.a. for five years stepping up to 3m BBSW +7.50% if not called in year 5. The notes are callable at the issuer’s option on interest payment dates after two years at $103, four years at $101.50 or five years at par.
FIIG is the Sole Lead Arranger for this transaction and the Notes are available to wholesale clients only (pursuant to the Corporations Act 2001 (Cth)), with an initial minimum subscription of A$50,000 and in increments of A$1,000 thereafter.
For more information
Consult the Preliminary Information Memorandum dated 25 September 2015, which is subject to completion, includes the draft terms and conditions of the Notes. A summary of the Notes is included below in "Notes summary" and a Research Report has also been made available (for wholesale investors only). Contact your FIIG Representative to access these documents.
Notes summary:
- The Notes have a six year term with interest paid quarterly in arrears
- The Notes will pay an initial floating rate of interest of 3mBBSW + 6.50% p.a.
- The Notes benefit from a secured second ranking charge over the issuer
- Investors have a put option at 101% of the face value of the Notes upon a change of control of the Issuer, except in instances where the Issuer lists on the ASX
- The notes are callable at the issuer’s option on interest payment dates after two years at $103, four years at $101.50 or five years at par
- The Notes benefit from package of maintenance covenants that enforces limits on the ability of the Issuer to borrow in the future and can force them to repay debt or raise additional equity if performance deteriorates
- The Notes are not listed on an exchange or rated by a ratings agency
To apply contact your FIIG Representative or phone 1800 01 01 81.