Tuesday 20 September 2016 by FIIG Research ripples_on_water Company updates

PMP Ltd bonds now available to retail investors

Retail investors can now invest in PMP bonds with an indicative yield to worst of 5.85%

magazine pile

PMP is ASX listed and the largest commercial printer in Australia and New Zealand. Its principal activities are commercial printing, letterbox delivery and magazine distribution services. PMP is ranked 1st or 2nd in each of its product segments and is the only one stop print and distribution house in Australia.

PMP is Australia’s largest heat set printer and accounts for approximately 37% of the total market (cold set printing is the process for newspapers, heat set is for catalogues and glossy printing). PMP also has a 35% share of the letterbox distribution market distributing over 2.3bn catalogues annually.  PMP has a blue chip customer base including Bauer Media, Woolworths and Metcash.

PMP raised $40m in senior unsecured notes in September 2015. These Notes offer a fixed coupon (paid semi annually) of 6.43% p.a. with a maturity of September 2019, callable at the Company’s option on either September 2017 at $102 or September 2018 at $101.

The bonds are currently offered at an indicative yield to worst* of 5.85%. The minimum parcel size is $10,000.

The PMP research report can be found by clicking here.External link - opens in a new window

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