CML Group is an ASX listed provider of finance, payroll and recruitment services. CML has today launched the issue of $20-25m in senior secured fixed rate bonds with a rate of 8.00% p.a. due March 2022
CML Group Limited (CML) is an ASX listed (ASX:CGR) provider of finance, payroll and recruitment services. The group has a market capitalisation of around $16m as at 7 March 2016 with a further $10m of listed convertible notes (ASX:CGRG).
CML commenced trading in 2002 as a recruitment franchisor, offering business development support to a national network of labour-hire franchisees. CML identified payroll and factoring as two opportunities, with the latter division growing rapidly and now representing greater than 50% of earnings.
CML is currently acquiring CashFlow Advantage Pty Ltd to bring further scale to this business.
For more information on CML please visit http://cml-group.com.au/.
CML Group Limited (ABN 88 098 952 277) (“CML”), guaranteed by its subsidiaries, to issue up to $25,000,000 senior secured Australian Dollar Fixed Rate Notes (“Notes”).
CML has today launched the issue of a six year, senior secured fixed rate note issue (“Notes”) with a fixed interest rate of 8.00% per annum, payable monthly in arrears, available exclusively though FIIG Securities Limited (“FIIG”). The Issuer is seeking to raise $20,000,000 and up to A$25,000,000 to assist with the acquisition of CashFlow Advantage Pty Ltd and provide for general corporate purposes including the funding of eligible receivable finance assets. The Issuer is seeking a minimum subscription of $20,000,000 and will not be accepting oversubscriptions above $25,000,000.
FIIG is the Sole Lead Arranger for this transaction and the Notes are available to wholesale clients only (pursuant to the Corporations Act (Cwlth) 2001), with an initial minimum subscription of A$50,000 and in increments of A$1,000 thereafter.
- The Notes have a six year final maturity, however the issuer has the right to call the Notes from May 2018 at $104, from May 2019 at $103, from May 2020 at $102 or from May 2021 at par
- The Notes will pay a fixed rate of interest. Between the Issue Date and the Par Call Date, the Notes will pay a fixed interest rate of 8.00% p.a. If the Issuer fails to call the Notes on the Par Call Date, the Notes will pay a fixed interest rate of 9.50% p.a. between March 2021 and the final maturity date in March 2022
- Interest will be paid monthly in arrears
- The Notes rank as senior secured obligations of the Issuer and the Guarantors. The nature of the security is detailed in the Preliminary Information Memorandum (IM)
- Investors have a put option at 101% of the face value of the Notes upon a change of control of the Issuer or the Guarantor Group
- The Issuer may call some or all of the Notes prior to the Par Call Date at a premium to the Note face value as determined in the Preliminary Information Memorandum. After the Par Call Date, the Issuer may call the Notes at par
- The Notes benefit from a covenant package that limits the amount of senior and total debt the Issuer can obtain, and ensures that the Issuer maintains appropriate levels of over collateralisation reserves relative to the performance of its asset portfolio. The size of these over collateralisation reserves are structured in line with ratings agency criteria for credit enhancement in Trade Receivables funding transactions, however are not rated by a ratings agency
- The Notes are not listed on an exchange or rated by a ratings agency
Contact your FIIG representative for more information.