Tuesday 09 September 2014 by Justin McCarthy Company updates

New issue – 360 Capital Group to issue AUD50m fixed rate notes

Key points:

  1. 360 Capital Investment Management Limited launched a $50m fixed rate bond issue yesterday with the ability to take oversubscriptions of up to $75m.
  2. The bonds are senior unsecured and will pay 6.90% p.a. with maturity in five years.
  3. The 360 Capital Group is an ASX listed (ASX: TGP) real estate investment and funds management group that concentrates on the strategic investment in, and active investment management of, real estate and real estate related assets.

Key Highlights360 capital management table

  • The 360 Capital Group is an Australian property funds management group comprising 360 Capital Group Limited ("360 Capital") and 360 Capital Investment Management Limited as responsible entity of the 360 Capital Investment Trust (the "Issuer")
  • 360 Capital and the Issuer of the Notes (together the "360 Capital Group") are listed on the ASX as a stapled security (ASX: TGP) with a current market cap of approx. AUD 240m
  • 360 Capital manages nine investment vehicles holding 33 industrial, office and retail assets across Australia valued at more than AUD 1.0bn on behalf of over 10,800 investors and has over AUD 100m in co-investments in its managed funds and a direct asset valued at AUD 38.5m
  • Total funds under management are well diversified across the 5 major Australian states, with high occupancy levels (99%) and long WALE (4.8 years)
  • Co-investments align the interests of the 360 Capital Group with underlying fund investors and provide income through distributions and capital growth in property values
  • The fixed rate notes are senior unsecured obligations of the Issuer, guaranteed by 360 Capital and certain controlled entities of both 360 Capital and the Issuer

The Notes

360 Capital Investment Management Limited (ABN 38 133 363 185) as responsible entity of the 360 Capital Investment Trust (ARSN 104 552 598) ("Issuer"), guaranteed by 360 Capital Group Limited (ABN 18 113 569 136) ("360 Capital") and certain controlled entities of 360 Capital and the Issuer, to issue AUD 50m senior unsecured and unsubordinated Australian Dollar Fixed Rate Notes ("Notes")

360 Capital Group (ASX: TGP) has today launched the issue of a five year, senior unsecured fixed rate note issue ("Notes") with an indicative interest rate of 6.90% per annum available exclusively through FIIG Securities Limited ("FIIG"). 360 Capital Group is seeking to raise AUD 50,000,000 to repay senior secured bank debt, acquire the remaining 41.1% of units in the 360 Capital Diversified Property Fund ("DPF") that it does not own and provide working capital. 360 Capital Group will accept a minimum of AUD 50m and will take over-subscriptions of up to AUD 75m.

FIIG is the Sole Lead Arranger for this transaction and the Notes are available to wholesale clients only (pursuant to the Corporations Act Cth 2001), with an initial minimum subscription of AUD 50,000 and in increments of AUD 10,000 thereafter.

The Issuer - 360 Capital Group

The Issuer and 360 Capital, and their controlled entities, are together the 360 Capital Group (see simplified group structure diagram* below). The 360 Capital Group is an ASX listed (ASX: TGP) real estate investment and funds management group that concentrates on the strategic investment in, and active investment management of, real estate and real estate related

For more information about the 360 Capital Group please visit their website or go to the ASX website and search TGP.

We also recommend reading the FIIG Research Report on 360 Capital Group.

360 group structure flow chart

*assumes 100% ownership of DPF after buyout of minority unitholders

Information about Notes

The Preliminary Information MemorandumExternal link - opens in a new window(on the FIIG website), which is subject to completion and amendment, dated 9 September 2014 includes the draft terms and conditions of the Notes. A summary of the Notes is included below in "Notes summary".

Who should consider this offer

The Notes are an attractive investment for wholesale clients looking to lock in a high fixed rate of return and/or are looking to diversify their fixed income exposure.

How to find out more and to apply

For more information talk to your FIIG Representative.

To provide your Firm Bid for Notes contact your FIIG Representative on 1800 01 01 81 or alternatively email newissue@fiig.com.au.

Important information

The information has not been lodged with Australian Securities and Investments Commission or any other authority. Any securities that may be offered by the Issuer in, or into, Australia are offered only as an offer that would not require disclosure to investors under Part 6D.2 or 7.9 of the Corporations Act. The information is a summary only and does not purport to be complete. It does not amount to an express or implied recommendation or a statement of opinion (or a report or either of those things) with respect to any investment in the Issuer nor does it constitute a financial product or financial advice. The information does not take into account the investment objectives, financial situation or needs of any particular investor. FIIG does not provide accounting, tax or legal advice. Prospective investors are required to make their own independent investigation and appraisal of the business and financial condition of the Issuer and the nature of any securities that may be issued by the Issuer. By accepting receipt of the information the recipient will be deemed to represent that they possess, either individually or through their advisers, sufficient investment expertise to understand the risks involved in any purchase or sale of any financial securities discussed herein.

FIIG has been engaged by 360 Capital Group to arrange the issue and sale of the Notes by the company and will receive fees from the issuer of the Notes. FIIG, its directors and employees and related parties may have an interest in the company and any securities issued by the company and earn fees or revenue in relation to dealing in those securities.

Disclaimer

The contents of this document are copyright. Other than under the Copyright Act 1968 (Cth), no part of it may be reproduced or  distributed to a third party without FIIG’s prior written permission other than to the recipient’s accountants, tax advisors and lawyers for the purpose of the recipient obtaining advice prior to making any investment decision. FIIG asserts all of its intellectual property rights in relation to this document and reserves its rights to prosecute for breaches of those rights.

Certain statements contained in the information may be statements of future expectations and other forward-looking statements. These statements involve subjective judgement and analysis and may be based on third party sources and are subject to significant known and unknown uncertainties, risks and contingencies outside the control of the company which may cause actual results to vary materially from those expressed or implied by these forward looking statements. Forward-looking statements contained in the information regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. You should not place undue reliance on forward-looking statements, which speak only as of the date of this report. Opinions expressed are present opinions only and are subject to change without further notice.

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An investment in notes or corporate bonds should not be compared to a bank deposit. Notes and corporate bonds have a greater risk of loss of some or all of an investor’s capital when compared to bank deposits. Past performance of any product described on any communication from FIIG is not a reliable indication of future performance. Forecasts contained in this document are predictive in character and based on assumptions such as a 2.5% p.a. assumed rate of inflation, foreign exchange rates or forward interest rate curves generally available at the time and no reliance should be placed on the accuracy of any forecast information. The actual results may differ substantially from the forecasts and are subject to change without further notice. FIIG is not licensed to provide foreign exchange hedging or deal in foreign exchange contracts services. The information in this document is strictly confidential. If you are not the intended recipient of the information contained in this document, you may not disclose or use the information in any way. No liability is accepted for any unauthorised use of the information contained in this document. FIIG is the owner of the copyright material in this document unless otherwise specified.

The FIIG research analyst certifies that any views expressed in this document accurately reflect their views about the companies and financial products referred to in this document and that their remuneration is not directly or indirectly related to the views of the research analyst. This document is not available for distribution outside Australia and New Zealand and may not be passed on to any third party without the prior written consent of FIIG. FIIG, its directors and employees and related parties may have an interest in the company and any securities issued by the company and earn fees or revenue in relation to dealing in those securities.