Tuesday 12 September 2017 by FIIG Research Company updates

Company updates – New DirectBond process, Cash Converters and IPG

This week, a new DirectBond process for non Australian dollar high yield bonds, IPG to merge with Pro-Pac, FY17 results for Cash Converters 

New DirectBond process for non Australian dollar high yield bonds

Given the growing demand for non Australian dollar denominated high yield bonds, FIIG has updated and improved its selection process by which it allows foreign currency bonds issued by a non Australian domiciled company onto its DirectBond list. 

Please see the new DirectBond process here.External link - opens in a new window

Frequently asked questions and answers are also available here.External link - opens in a new window

Please note the new DirectBond process and FAQs require a wholesale login. 

Cash Converters – FY17 results

On 22 August 2017, Cash Converters released its full year 2017 results.

  • Cash Converters (CCV) reported FY17 unaudited NPAT of AUD20.6m which was substantially higher than the loss of AUD5.3m reported in FY16. However, the FY16 result was impacted by restructuring costs and provisioning. CCV’s focus over the last 12 months has been to deliver on its new strategy, improve customer focus, strengthen risk and compliance systems, and expand new products and channels
  • The new medium amount credit contracts (MACC) product, which was introduced in November 2016, has seen strong growth with the loan book growing to AUD13.4m in six months
  • Net bad debts written off in Personal Finance fell 9% to AUD29.9m in FY17 from AUD32.8m in the prior year

For more information, see this link here.External link - opens in a new window

Pro-Pac has entered into a Share Sale Agreement to merge with Integrated Packaging Group

Pro-Pac has entered a Share Sale Agreement to merge with Integrated Packaging Group (IPG) for AUD177.5m, which will be funded through a combination of AUD60m Pro-Pac shares issued to the vendors, an AUD54.8m fully underwritten equity raising and AUD70m from a new debt facility. We believe that IPG’s 7.30% 29 September 2019 bond will therefore be repaid on financial close (on 6 November 2017 according to the indicative timetable below) at the call price of AUD102.00. IPG must give a maximum of 30 and minimum of 15 days’ notice to redeem the notes.

Indicative timetable: 


For more information, see this link here.External link - opens in a new window 

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