Tuesday 23 June 2015 by FIIG Research Company updates

Company updates on Cash Converters, CML, Leighton Holdings, NEXTDC, Old Mutual, Plenary and Qantas

The new WIRE website allows us to publish news as it happens. Since last week, seven company notes have been added

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The WIRE website is designed to be a dynamic news site so that you can access it at any time and get the latest news. If you want to find information about a particular issuer you can use the search function or go to the ‘All issuers’ section. To see the latest news, go to the home page: http://thewire.fiig.com.au/, browse the features and scroll down to the ‘Latest News.’

In case you missed the company news published after The WIRE newsletter was sent last Wednesday, here is a summary.

Cash Converters class action settled

Cash Converters (CCV) has been the subject of a class action claim since 2013. The claim has now been settled.

Settlement has been reached bringing the matter to a close without any admission of liability by CCV. CCV has agreed to pay $20m into a fund which will be used to make distributions to members of the action. Any unused proceeds will be returned to CCV.  Legal fees capped at $3m will also be paid by CCV.

We published an update in this regard on 18 June including links to the ASX release and CCV’s 3Q15 results. To view the update, please see the related articles below.

CML compliance update

As part of the requirements of its bond issue, CML is to provide monthly investor reporting on the performance of eligible receivables and confirm compliance with its covenants.

In an ASX release, the company confirmed compliance and provided statistics on its trade finance loan book as at 31 May 2015. Of note is that the group’s trade finance loan book performance is stable and the acquisition and expansion are on track and in-line with forecasts.

We published a company update covering this last Monday, 15 June. To see this update please see the related articles below. 

Leighton Holdings/CIMIC Group launches tender offer

CIMIC Finance (USA) Pty Ltd (formerly Leighton Finance USA) announced a tender offer for its outstanding USD500,000,000 5.950% Guaranteed Senior Notes due 2022. The offer is made on an “any and all” basis meaning there is no minimum/maximum amount being tendered.

The company made the offer as an exercise of “balance sheet management” and the offer expired on Friday, 19 June. Upon close of the tender period, CIMIC announced that it will buy back about USD300m of the USD500m line.  With about USD200m still outstanding the line continues be quite liquid and readily traded.

We published a company update covering this last Tuesday, 16 June (updated 22 June). To see the full note please see the related articles below.  

NEXTDC made available to retail investors

On 22 June, The NEXTDC 8% (plus a cumulative 1.0% p.a. payable on redemption) fixed rate bond maturing on 16 June 2019 was made available to retail investors. With an indicative yield to the first call date in December 2016 of 5.57% and to maturity of 7.42% due 16 June 2019, the bond is one of the highest yielding available to retail investors. The bond is available in a minimum parcel size of $10,000 (FIIG restriction) and $1,000 thereafter.

For more information see the full article below.  

Old Mutual PLC added to the DirectBonds list

Today, Old Mutual PLC 6.376% GBP variable rate Tier 1 subordinated notes were added to the DirectBonds list, available to wholesale investors. Minimum denominations/parcels of GBP10,000 (FIIG Restriction) and GBP1,000 thereafter. View the factsheet for this bond.

Plenary - available to retail investors

On 18 June, FIIG announced the Plenary Bond Finance 7.50% fixed rate bond maturing on 16 June 2021 was available retail investors. With an indicative yield of 5.90%, the Plenary bond is one of the highest yielding bonds available to retail investors. The bond can be called early with a first call of $103 at June 2018 and is available in minimum investment amounts of $10,000.

To read the full article, please see the related articles below.

Qantas

2021 bond now available to retail investors

On Friday, the AUD fixed rate senior unsecured notes issued by Qantas Airways Limited maturing on 11 June 2021 was added to the Direct Bonds list.

Moody’s changes Qantas’ outlook to positive from stable

A release to the ASX last Thursday 18 June revealed that ratings agency, Moody’s have affirmed its change in outlook from stable to positive for the issuer. This outlook upgrade is a reflection of the “reduction in adjusted debt” and also “considers the considerable progress the company has made…as well as the benefits being realised from weakening of the Australian dollar and lower fuel prices.”

You can view the research report by clicking on the corresponding article from the related articles below.

For more information, please speak to your FIIG representative.

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