Tuesday 05 April 2016 by FIIG Research Company updates

Company updates - Dicker Data, McPherson's and IMF Bentham

Retail investors can now invest in high yield Dicker Data and McPherson's bonds with yields to maturity ranging from 6.52% to 7.69% per annum. IMF Bentham is set to benefit from the settlement of the S&P class action

Dicker Data

Dicker Data is an ASX listed wholesale distributor of computer hardware and related products. The company has over 37 years’ experience with operations in Australia and New Zealand. In April 2014, Dicker Data became a top three IT distributor in Australasia following the acquisition of Express Data.

The Notes offer a floating return (paid quarterly) of 90 day BBSW + 4.40% p.a. with a maturity in March 2020 and  callable at the company’s option from March 2018 at 103% or from March 2019 at 101.50% The bonds are currently offered at an indicative yield to maturity of 6.52%. The minimum parcel size is $10,000.

The Dicker Data research report is available here.

McPherson's Limited

McPherson’s is an ASX listed, leading marketer and distributor of health & beauty, consumer durable and household consumable products, with operations in Australia, New Zealand and Asia. It has a long history and was established in 1860.

The company has a diverse distribution channel including grocery, pharmacy department stores as well as independents and operates across five key divisions.

The floating rate notes are offered at an indicative yield to maturity of 7.40%. They mature in March 2019 and are callable from March 2017 at 103% or from March 2018 at 101.5%

The fixed rate notes offer a coupon of 7.10% paid semi annually and an indicative yield to maturity of 7.69%. The notes mature in March 2021 and are callable from March 2018 at 103%, March 2019 at 102% or from March 2020 at 101%.

Both fixed and floating rate bonds are available from $10,000 per bond. A link to FIIG research can be found at the following link.

Pricing is accurate as at 4 April 2016 but subject to change. Please contact your local dealer for more information.

IMF Bentham

On 24 March, the Federal Court made orders approving the settlement of the S&P class action. No objections were made by any group member, including S&P. IMF intends to book AUD47m of profit before tax in FY16 in relation to this matter.

The settlement if completed is significantly greater than the average net revenue contribution of IMF’s historical settled cases of around AUD3m. The profit uplift of AUD47m represents up to 59% of total gross debt outstanding post bond issue, assuming a AUD30m new bond issue.

More information is available here.