Tuesday 22 March 2016 by Company updates

IMF Bentham to issue $30m-$50m in fixed rate bonds


IMF Bentham Ltd an ASX listed litigation funder has today launched a new fixed rate, senior secured bond offer. The bonds will pay 7.40% p.a. due June 2020


The issuer

IMF Bentham Ltd (IMF) is engaged in the investigation, management and funding of litigation and arbitration claims in Australia and other jurisdictions. IMF is listed on the ASX with a market capitalisation of $226m as at 18 March 2016.

IMF commenced operations in Australia in 2001 and based on the success of its business model its strategy in the last 5 years has been to expand into complementary common law jurisdictions; including the United States and Canada directly, and the United Kingdom and mainland Europe through its joint venture operations. In Australia, IMF has a market share of approximately 70% domestically in Australia with limited global competition; this is due to high barriers to entry such as underwriting expertise and financial capacity.

IMF's clients include ASX200 companies, SMEs, individuals and insolvency practitioners.

The proceeds of the Notes issue will be used to support the expansion of the business.

For more information on IMF please visit https://www.imf.com.au/External link - opens in a new window.

The offer

IMF Bentham Ltd (ABN 45 067 298 088) (“IMF”) to issue up to $50,000,000 Senior Secured Australian Dollar Fixed Rate Notes (“Notes”).

IMF has today launched the issue of a four year and three month, senior secured fixed rate note issue (“Notes”) with a fixed interest rate of 7.40% per annum, payable semi-annually in arrears, available exclusively through FIIG Securities Limited (“FIIG”). The Issuer is seeking to raise AUD30m for general corporate purposes to fund its growth objectives in Australia, the US and other markets and will accept oversubscriptions up to AUD50m.

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.

Notes summary:

  • The Notes have a 4 year and 3 month final maturity 30 June 2020 with interest paid semi-annually in arrears
  • The Notes will pay a fixed rate of interest of 7.40% pa
  • The Notes rank as senior secured obligations of the Issuer. The nature of the security is detailed in the Preliminary IM
  • Investors have a put option at par upon a Change of Control of the Issuer
  • The Issuer may call some or all of the Notes prior the Maturity at 101 as at 30 June 2019 or at Par due to a Tax Event or clean up call
  • The Notes benefit from a covenant package that, amongst others, limits the amount of debt the Group can obtain as detailed in the Preliminary IM
  • The Notes are not listed on an exchange or rated by a Ratings Agency                                                                                                  

Contact your FIIG representative for more information.