The G8 Education Limited floating rate note (FRN) with a maturity date of 3 March 2018 was added to the DirectBonds list yesterday
These bonds are now available to retail as well as wholesale investors in minimum face value parcel sizes of $10,000. The FRNs are callable on 3 March 2016 at $103 or 3 March 2017 at $101.50 and are currently indicatively offered at a trading margin of 307bps over BBSW.
G8 recently reported strong FY14 results (FYE 31 Dec) with revenue up 79% to $491m, underlying EBIT increasing 101% to $101.5m and underlying NPAT increasing 88% to $60.6m over the year, with the acquisition of 203 new centres. Gearing (net debt/total capital) has increased to 36% YE14 (12% YE13), as the group used more debt to fund acquisitions, however interest coverage remains strong at 8.9x (8.6x YE13).
The G8 Education note adds to the FIIG originated investments which have become available to retail investors and provides further diversification options especially given this is a floating rate note. Other FIIG originated bonds that are available to retail investors include:
- PMP
- Mackay Sugar
- Silver Chef
- Cash Converters
- PAYCE Consolidated
- G8 Education’s fixed rate note
Further to this, there are a number of other FIIG originated bonds due to become available to retail clients this year including Coffey International, CBL Corporation and Adani Abbot Point Terminal.
You can view the full research report and the factsheet on the FIIG website
or for more information please call your FIIG representative.