This week, Mackay Sugar update, NAB upsizes its NRMBS 2018-1 issue, NEXTDC a potential takeover target, QMS hires Citi for defence with new Factsheet available, buyers sought for RSEA and Sunland requests noteholder votes
Mackay Sugar update
We have provided an update for Mackay Sugar available here. Note the content requires a FIIG client login.
NAB A$2bn RMBS issue
On 8 February 2018, National Bank Australia (NAB) reopened the domestic securitisation market with an enlarged A$2bn print via its National RMBS 2018-1, a self led securitisation of prime residential mortgages. The offering, with an indicative size of A$750m, includes Asia Pacific's first Green RMBS tranche, which is expected to be certified as a climate bond under the Climate Bonds Initiative standards. Here is the indicative price guidance released on 5 February and volume increase on 8 February.
NEXTDC a potential takeover target
On 11 February 2018, it was reported in The Australian that Singapore government investment vehicle, Temasek, is believed to be assessing NEXTDC as a potential takeover target. Other companies have previously been reported as expressing potential interest, including peer Equinix and private equity group Blackstone.
Investors should be aware that the bond is callable from 9 June 2019 and every six months thereafter at 101.50%. NEXTDC must give at least seven and not more than 60 days’ notice. The company can call before this date subject to a make whole payment.
For more information on the bond, please see the NEXTDC June 2021 Factsheet*
QMS hires Citi for defence
On 12 February 2018, it was reported in The Australian that QMS Media (QMS) could be on the radar of suitors, with suggestion two parties have been conducting due diligence. One of the parties is said to be based in Asia. As such, QMS is believed to have hired investment bank Citi as its defence advisor.
The company’s half year results will be released on Friday. Its annual earnings before interest, tax, depreciation and amortisation is expected to be around AUD43m, which QMS is on track to meet or exceed that amount. This compares with AUD37.5m in the previous year.
Chief executive Barclay Nettlefold also announced the appointment of divisional leaders to the Australian and New Zealand businesses. John O’Neill, who is chief sales officer, is taking the role of Australian business head and Wayne Chapman, who is the chief executive of the company’s media business in New Zealand, will become the country head.
The new QMS Media 2022 Senior Unsecured Notes Factsheet* is available.
Buyers pursued for RSEA
On 13 February 2018, it was reported in the Australian Financial Review that private equity owner, Champ Ventures, is seeking a buyer for RSEA. The article said that Allier Capital has been appointed to “direct an auction scheduled to launch as early as this month”. It was reported that RSEA “is expected to be worth as much as AUD200m and is likely to be pitched to bigger private equity firms and trade players in Australia and offshore, including ASX listed Wesfarmers”.
Investors should be aware of the call structure of the bond. It is callable with a minimum 30 days and a maximum 60 days’ notice at each quarterly interest payment date at 102% (April, July, October and January), then at 101% from October 2019 to maturity.
For more information on the bond, please see the RSEA October 2021 Factsheet*
Sunland requesting votes
Existing noteholders of Sunland’s 7.55% 25-Nov-20 fixed rate notes (ISIN: AU3CB0234367), issued by Sunland Capital Pty Ltd (The Issuer), should have received an email regarding the company’s consent event.
The Issuer has undertaken to pay a consent fee equal to 0.25% of the aggregate amount of notes held by each person who votes that amount of notes in favour of the Noteholder Resolution (“Consent Fee”). Payment of the Consent Fee is conditional upon the Noteholder Resolution being passed.
Under the terms of the Note Trust Deed, the Noteholder Resolution must be passed by noteholders holding at least 50% of the aggregate principal amount of notes outstanding (either at a Meeting or by Circulating Resolution as more fully described in the Notice of Meeting).
A response is due by 10:00am AEDT, on Friday 16 February. If you have any questions, please speak to your FIIG representative or call one of our fixed income experts on 1800 01 01 81.
- QMS Media 2022 Senior Unsecured Notes Factsheet*.
*Please note the Factsheets above requires a wholesale login.