MA Financial, Andrew Pridham’s mini-Macquarie, has tapped Australia’s mini high-yield bond market.
The boutique advisory and asset management firm, which has just over $9 billion in assets under management, raised $55 million via a four-year floating-rate bond deal that was marketed to fixed-income funds and high-net-worth investors last week by sole lead manager Ord Minnett. The firm has the option to upsize the issue by $15 million via an exchange offer to existing bondholders.
The deal might help small-cap managers eyeing the stock to figure out the company’s cost of capital. MA paid a margin of 4.85 per cent above the bank rate, which was inside the 5 per cent guidance. The note is set to mature in April 2028.
MA is expected to use the proceeds to refinance an existing $30 million corporate bond, due next month, and for general corporate purposes to support its growth initiatives. Its other two bonds are set to mature in September this year and September 2027.
Sources say MA would miss out on investment-grade status and land in the BB+ to BB area of the credit rating spectrum.
Meanwhile, the big guns were tapping the main Australian dollar bond market in size.
ASX-listed shopping centre operator Vicinity, which has an A credit rating, raised $500 million of 10-year debt, paying a margin of 1.7 percentage points over the bank rate, or 6.19 per cent.
Earlier in the week, privately owned Sydney Airport, which has a BBB+ rating, attracted more than $2 billion in orders for its $850 million 10-year bond issue, which was priced at 1.47 percentage points over the bank rate, or 5.9 per cent.
The big four banks were on the airport deal – and, except for National Australia Bank, they all got a role in the Vicinity raising.
Read the full story tomorrow and more on the Street Talk page.
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