ASX-listed finance and employment services company CML Group today announced the launch of a $25 million unrated bond issue available to private investors, SMSFs and financial planners.
The 6-year floating rate senior secured issue, to be arranged by FIIG Securities, will initially pay a margin of 5.40 per cent above the 30-day Bank Bill Swap Rate which amounts to a coupon rate of 7.55 per cent at current market rates.
It will have a minimum initial investment of $50,000 at issue and will be distributed to new and existing FIIG Securities clients who qualify as sophisticated or professional investors.
FIIG CEO Mark Paton said the company had delivered a number of issues to investors in recent months as companies moved to diversify their funding sources and investors sought assets which paid strong reliable income streams.
“This is a market that is going from strength to strength as SMSFs and financial planners expand their horizons to find fixed-income assets that pay more realistic yields than the 2 per cent available on term deposits,” Mr Paton said.
“CML Group is a quality Australian company and the opportunity to lend to a lender at more than 7 per cent will no doubt be attractive to a wide range of investors.”
CML Group (ASX:CGR), which was founded in 2002, delivers finance, payroll and employment solutions to its clients. It plans to use the funds from the bond issue to grow the loan book of its Finance Division, earlypay and to fund the acquisition of invoice finance provider Cashflow Finance Australia Pty Ltd (CFA).
CML’s Finance Division undertakes ‘factoring’ or ‘receivables finance’. Through the factoring facility the company provides an advance payment of typically up to 80% of a client’s invoice to help their business overcome the cash pressure of delivering goods or services in advance of payment from their customer (often 30 to 60 days).
The company’s Payroll & Employment division provides ‘managed employment’ services to clients that do not wish to engage their workforce directly.
The CML Group bond issue is the fourth that FIIG has arranged in six weeks, following successful issues in March by MoneyTech ($25 million), McPhersons ($60 million) and Dicker Data ($40 million.)
FIIG Securities Limited, which is licensed by the Australian Securities and Investments Commission (ASIC), is Australia’s largest specialist fixed-income dealer. FIIG has more than $10 billion in term deposits and corporate bonds under advice in its short-term money market, bonds and custody business. The company has offices in Sydney, Melbourne, Brisbane and Perth. For more information about FIIG Securities please visit www.fiig.com.au