Impact Group Aus Pty Ltd was founded in 1996 and is one of the largest builders of residential homes primarily in Queensland, followed by New South Wales and Victoria. Impact has today launched the issue of five year, senior secured fixed rate bonds with a rate of 8.50% p.a.
The issuer
Impact was founded in 1996 is now one of the largest builders of residential homes in Queensland. Impact targets both the property investor and owner occupied markets and has broadened its product range to include townhouses. It has historically operated in South East Queensland and has recently expanded into Victoria and the Hunter Valley in New South Wales.
In FY15 revenue from house contracting (home building) was $84.7m which represented 82% of total revenue. In FY16 this is forecast to increase to $134.7m, however, due to Impact’s strategy to diversify their product mix, house contracting is expected to fall to 70% of total revenue. Townhouse revenue which was $5.3m and 5% in FY15 and is expected to increase to $27.2m in FY16 and represent 14% of total revenue. It is expected that the townhouse segment will represent around 20-25% of sales revenue over the long term.
For more information about Impact please visit http://impacthomes.com.au/
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The offer
Impact Group Aus Pty Ltd (ABN 83 100 923 297) (“Impact”) to issue up to $45,000,000 senior secured Australian Dollar Fixed Rate Notes (“Notes”).
Impact has today launched the issue of a five year, senior secured fixed rate note issue (“Notes”) with a fixed interest rate of 8.50% per annum, payable quarterly in arrear, available exclusively though FIIG Securities Limited (“FIIG”).
The Issuer is seeking to raise A$40,000,000 to repay existing debt and for general corporate purposes. The Issuer will accept oversubscriptions up to A$45,000,000.
FIIG is the Sole Lead Arranger for this transaction and the Notes are available to wholesale clients only (pursuant to the Corporations Act 2001 (Cth)), with an initial minimum subscription of $50,000 and in increments of $1,000 thereafter.
Notes summary:
- The Notes have a five year final maturity with interest paid quarterly in arrears
- The Notes will pay a fixed rate of interest of 8.50% pa
- The Issuer must repay $1 million of the Notes on each interest payment date, principal amortisation during the Term of $20 million in aggregate
- 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
- Investors have a put option at 101% of the face value of the Notes upon a change of control of the Issuer
- The Issuer may call some or all of the Notes prior the Maturity at a premium to the Note face value as determined in the Preliminary Information Memorandum
- The Notes benefit from a covenant package that, amongst others, limits the amount of debt the Group can obtain as detailed in the Preliminary Information Memorandum
- The Notes are not listed on an exchange or rated by a ratings agency
Contact your FIIG representative for more information.