Tuesday 14 February 2017 by FIIG Research ripples_on_water Trade opportunities

Impact Homes bonds now available to retail investors

Retail investors can now invest in Impact Homes February 2021 senior secured amortising fixed rate bonds


Impact Group Aus Pty Ltd (Impact) was founded in 1996 and has grown to become Queensland’s second largest residential home builder (FY16). It has operated through multiple property cycles and completed in total over 3,500 homes. It has grown from constructing 90 homes in FY09 and is forecast to complete over 1,000 in FY17.

Impact has a vertically integrated business model which extends from development through to property management, allowing Impact to profit at each stage. The company is privately owned by three family groups.

Impact raised $45m in senior secured amortising notes to refinance debt and fund growth. The notes are 8.50% fixed rate with a maturity of 12 February 2021. They are callable in February 2019 at 103.0% and in February 2020 at 101.5%. The notes repay principal totalling $1m each quarter.

Noteholders are in a senior secured position with first ranking charges over and guarantees from the issuer, and all main subsidiary entities including the joint venture companies. Joint venture partner and shareholder loans are subject to subordination agreements. It is estimated that tangible assets supporting bondholders’ position will amount to over $100m in FY17.

The Impact Group research report can be found here.External link - opens in a new window

The bond is indicatively offered at a yield to worst* of 7.62%, which is to maturity on 12 February 2021.

The bonds are available in $10,000 parcels with $1,000 increments and $50,000 up front spend for new clients.

Please contact your FIIG representative for further details.

Pricing is accurate as of 14 February 2017 but subject to change.

*Yield to worst is the lowest yield an investor can expect when investing in a callable bond.