Tuesday 10 April 2018 by FIIG Research Company updates

AUD Company updates – Axsesstoday, CML, Genworth Australia, IMF Bentham, Liberty and Sydney Airport

This week, Axsesstoday AUD200m securitisation warehouse, CML calls its fixed rate notes, Genworth Australia full year results, FIIG originated IMF Bentham available to retail investors, and Liberty RMBS and Sydney Airport receive rating action

Axsesstoday securitisation warehouse and equity raising

On 26 March 2018, Axsesstoday (AXL) announced an AUD200m securitisation warehouse facility to reduce funding costs and drive further growth. The ASX announcement is available here.

Key details of the securitisation:

  • AUD200m line of securitisation warehouse facility established
  • Diversified access to Australian wholesale debt markets to fund rapid organic growth
  • Material reduction in costs of funds Reduced equity requirements to 10% and below over time
  • Scalable, revolving funding platform increasing capacity for growth
  • Applied to both hospitality and transport asset segments

The following Axsesstoday bonds are available to trade:

  • Axsesstoday 7.50% June 2021 AUD bond – YTW at 5.61%pa; call date on 22 June 2020 at $100.00
  • Axsesstoday BBSW+6.50% October 2021 AUD bond – YTW at 6.95%pa; call date on 9 October 2020 at $100.00

Read the Axsesstoday research compendium report*

CML calls fixed rate notes

On 3 April 2018, CML Group (CML) announced its intention to redeem AUD40m in total of fixed rate notes at the next call date of 18 May 2018.

The company has also secured an additional AUD80m funding, to take its institutional funding facility from AUD40m to AUD120m. This facility has a revolving 12 month term and the provider, ANZ has agreed to reduce the capital support requirement by 5% - this reflects reduction in other debt following refinance of the fixed rate notes. CML now has an additional AUD40m funding headroom to support business growth.

Following the redemption and refinance, CML’s cost of funds will reduce substantially. However, the company will have a near term one off write down of unamortised costs of AUD1.07m and a penalty for early repayment of AUD1.6m for redeeming the bonds early.

CML noted that integration of the recently acquired trade finance book is ahead of schedule and reaffirmed earnings guidance for FY18 EBITDA of AUD15.5m and FY19 EBITDA of AUD19.5m.

The following CML bonds are available to trade:

  • CML 8.00% March 2022 AUD bond – YTW at 2.85%pa; call date on 18 May 2018 at $104.00 (this one is being called)
  • CML BBSW+5.40% May 2021 AUD bond – yield to maturity at 5.14%pa

The CML research compendium report is available on the FIIG website to wholesale* and retail clients.

Genworth full year results

We have provided a report for Genworth Financial Mortgage Insurance (Genworth Australia) full year 2017 results.

Key points:

  • Genworth Australia reported statutory net profit after tax (NPAT) of AUD149.2m, down 26.5% from AUD203.1m reported in FY16. Underlying NPAT was AUD171.1m, down 19.4% from FY16
  • Lower premium growth was primarily the reason for the decline in profits, this trend was similar to that seen in 1H17 results
  • Gross written premium (GWP) of AUD369m was 3.4% lower compared to FY16 and gross earned premium (GEP) of AUD524.7m was down 16.5% compared to FY16

Please see the full report on the FIIG website here available to wholesale clients. Read the Genworth research compendium report*

The following Genworth bonds are available to trade:

  • Genworth 7.625% September 2021 USD bond; rated B at YTW of 9.08%pa
  • Genworth BBSW+3.50% July 2025 AUD bond; rated A- at YTW of 3.74%pa


IMF Bentham goes retail

On 6 April 2018, the FIIG originated IMF Bentham fixed rate bond due June 2020 was made available to retail investors.

Issuer Type Structure Maturity date  Rate  Yield to worst  Minimum investment amount 
IMF Bentham Limited Fixed Senior unsubordinated 30 June 2020 (call date on 30 June 2019 7.40% 4.08% AUD10,000

Please note pricing is indicative only and subject to change. Please contact your FIIG representative for more information on the IMF Bentham 2020 bond.

Retail investors can invest in the IMF 2020 bond from AUD10,000 per bond with a minimum portfolio balance of AUD250,000.

Read our latest research report for IMF Bentham on the FIIG website here available to all investors. Read the IMF Bentham research compendium report*.

Liberty RMBS notes upgraded by Moody’s

On 28 March 2018, Moody’s Investors Service (Moody’s) upgraded the Liberty 2014-2 and 2017-3 residential mortgage backed securities (RMBS) credit ratings as detailed below:

Please contact your relationship manager for more information on the Liberty Financial RMBS.

New DirectBonds

Please note the following DirectBonds are not limited to AUD companies.

  • American Axle & Manufacturing USD 6.25% March 2026 senior unsecured notes; rated B at YTW – 5.59%pa. View Factsheet*
  • Calpine Corporation USD 5.375% January 2023 senior unsecured notes; rated B at YTW – 5.64%pa. View Factsheet*
  • Calpine Corporation USD 5.75% January 2025 senior unsecured notes; rated B at YTW – 6.68%pa. View Factsheet*
  • Insurance Australia Group AUD BBSW+2.10% June 2044 unsecured subordinated floating rate notes; rated BBB at YTW – 4.29%pa. View Factsheet*
  • IMF Bentham AUD 7.40% June 2020 secured fixed rate notes at YTW – 4.65%pa available to retail investors. View Factsheet*
  • Liberty Financial AUD 5.10% April 2021 senior unsecured notes; rated BBB- at YTW – 4.40%pa. View Factsheet*
  • Teva Pharmaceuticals USD 2.80% July 2023 senior unsecured notes; rated BB at YTW – 5.47%pa. View Factsheet*
  • Teva Pharmaceuticals USD 3.15% October 2026 senior unsecured notes; rated BB at YTW – 5.58%pa. View Factsheet*
  • Commonwealth Bank of Australia AUD 3m BBSW+0.88% July 2022 senior unsecured floating rate notes; rated AA- at YTW – 3.12%pa

We have updated the DirectBond Filter Lists for April 2018. A complete list is available on our research page here*, or take a look at the frequently asked questions

S&P upgrades Sydney Airport

We have a provided an update on Sydney Airport’s S&P upgrade, and reiterate our recommendations on its CPI+3.76% notes due 2020 and its CPI+3.12% notes due 2030. The credit outlook remains Positive.

Key points:

  • On 27 March 2018, S&P upgraded the ratings on Sydney Airport, aligning them to Moody’s ratings.
  • S&P cited greater confidence in the stability of the company’s financial policies, including its current practice of distributing 100% of operating cash flows. S&P also expects passenger growth to continue, which will support earnings growth

The full update is available on the FIIG website to wholesale and retail clients. Read the Sydney Airport research compendium report*

The following Sydney Airport bonds are available to trade:

  • Sydney Airport CPI+3.76% November 2020 AUD bond at YTW of 2.15%pa
  • Sydney Airport CPI+3.12% November 2030 AUD bond at YTW of 2.82%pa
  • Sydney Airport 3.63% April 2026 USD bond; rated BBB+ at YTW of 3.75%pa

Please note indicated yield to worst (YTW) are accurate as of 10 April 2018, subject to change. Standard & Poor’s ratings are shown. *Content requires a wholesale client login.


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