Tuesday 06 December 2016 by FIIG Research Trade opportunities

New bond issue – NRW Holdings launches a fully amortising bond


Resources and infrastructure sectors contract services provider NRW Holdings Limited (NRW) announced the launch of a A$60-70m fully amortising bond issue available to wholesale investors only, paying interest of 7.50%pa with a final maturity of 30 November 2020

NRW Holdings

The issuer

NRW is a diversified provider of contract services to the resources and infrastructure sectors in Australia and internationally. Established in 1994 and listed on the ASX in 2007, NRW has a current market capitalisation of approximately $170m.

NRW’s geographical diversification across WA and QLD is complemented by its delivery of a wide range of operations. These encompass civil expertise including: bulk earthworks and concrete installation, contract mining, and drill and blast. NRW also provides a refurbishment and rebuild service for earthmoving equipment and machinery.

The offer

  • NRW Holdings Limited (ABN 95 118 300 217) guaranteed by certain of its subsidiaries, to issue A$60m of senior secured fully amortising Australian dollar notes, with oversubscriptions accepted up to A$70m
  • The notes will pay a fixed rate of interest of 7.50%pa
  • The notes have a four year term with equal principal and interest payments paid quarterly in arrears, and fully amortise over the term
  • The notes will be secured by a first charge over a specific equipment asset pool with an independently assessed fair market value of $90.253m (based on a A$70m note issue size). If the issue size is A$65m or less, a pool of equipment assets valued at $5.665m will not be included as security for the notes. In this scenario, the fair market value of the equipment asset security of the notes would be $84.588m.
  • The notes rank as senior secured obligations of the issuer. The nature of the security is detailed in the preliminary information memorandum (IM)
  • Investors have a put option at 101% of par 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 IM
  • The notes benefit from a covenant package that, amongst others, limits the amount of debt NRW and the guarantors can obtain as detailed further in the preliminary IM
  • The notes are not listed on an exchange or rated by a ratings agency
  • FIIG is the sole lead arranger for this transaction and the notes are available to wholesale clients only (pursuant to the Corporations Act 2001 (Cwlth)), with an initial minimum subscription of A$50,000 and in increments of A$1,000 thereafter

The preliminary information memorandum can be viewed hereExternal link - opens in a new window, and associated research here.External link - opens in a new window

To apply please contact your FIIG representative or phone 1800 01 01 81.