Tuesday 23 May 2017 by FIIG Research Company updates

Company updates – AusNet Services, Asciano Finance, G8 Education, Liberty Financial and Mackay Sugar

This week, AusNet provided its FY17 results, we have two new DirectBonds from Asciano Finance, G8 Education ends its voluntary suspension, a new Liberty Financial fixed rate bond, and Mackay Sugar provided the results from its grower survey

AusNet Services

AusNet Services have reported for FY17, noting higher cashflow from operations and a stable set of results in line with consensus estimates.

More information is available here.External link - opens in a new window

Asciano new DirectBonds

Asciano Finance Limited is the wholly owned subsidiary of Asciano Limited (collectively known as the ‘Group’). Asciano Finance acts as the borrower for the Group, which operates under the Pacific National (PN) brand. PN is one of Australia’s largest national rail freight operators. As at 31 December 2016, PN operates in approximately 60 locations throughout Australia, had 594 active locomotives, 11,580 active wagons, and employed 3,572 people across Australia.

The Asciano Finance senior unsecured 5.40% fixed rate, and BBSW +2.60% floating rate bonds mature on 12 May 2027. The bonds also have a make whole call provision at 50bps over the relevant treasury yield until 12 May 2027, callable in full with 15 days’ notice thereafter. The bonds are Australian dollar denominated and available to wholesale investors only, in minimum parcels of AUD10,000.

For more information please see the Asciano Finance May 2027 fixed rateExternal link - opens in a new window and floating rateExternal link - opens in a new window bond factsheets.

G8 Education

G8 has released a statement confirming the end of it voluntary suspension. As G8 previously informed the market, it had terminated its agreement with CFCG Investment Partners (CIPI) after it did not meet its commitment to invest a second and final tranche in a share placement.

More information can be found here.External link - opens in a new window

New Liberty Financial A$100m senior unsecured fixed rate bond issue

Liberty is an unlisted, diversified, non bank financial services business. Liberty was founded in 1997, has over 280 staff, over 80,000 customers and assets in excess of $6 billion. It operates in Australia and New Zealand across multiple personal finance offerings, ranging from motor vehicle to mortgage finance.

The offer

Liberty have announced the offer of a minimum A$100 million of three year, fixed rate, unsecured, bullet maturity notes. The notes are available to wholesale investors looking to lock in a shorter dated, fixed rate investment issued by a diversified financial services company.

Key points:

  • Liberty has an issuer investment grade credit rating from Standard & Poor’s of BBB- (stable)
  • Note investors will have the benefit of certain covenants including:
    • A negative pledge
    • Change of control protection (when combined with a reduction in Liberty’s credit rating resultant from the change)
    • A coupon step up in the event Liberty’s issuer rating falls below investment grade (the step up increases the lower Liberty’s credit rating becomes (to BB+, add 1%, to BB, add a further 0.5%, to BB- or lower, add a further 0.5%)
  • The notes are not listed
  • The notes offer a three year fixed rate of return
  • CBA and Westpac are acting as joint lead managers for this transaction

FIIG is participating in this transaction as a distributor only. Please contact your dealer for more information.

Mackay Sugar

Mackay Sugar has released its grower survey results, sent out in April to gauge what growers believe should be done with respect to the company’s future.

More information is available here.External link - opens in a new window