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Tuesday 17 March 2015 by Trade opportunities

New issue – Dicker Data to issue $40m floating rate notes

THIS CONTENT IS SUITABLE FOR WHOLESALE INVESTORS ONLY

The senior unsecured bonds will pay a floating rate of 440 basis points (bps) over 90 day bank bill rate

Key points:

Dicker Data launched a $40m five year floating rate wholesale bond issue through FIIG Securities.
The interest rate will be 90 BBSW plus a margin of 440bps. At current market rates, will deliver a first coupon of 6.725% and an estimated yield to maturity of 6.90%.
Dicker Data is one of the top three IT distribution companies in Australasia with a 36 year trading history and is ASX listed (ASX: DDR) with a market capitalisation of ~$216m.

Source: FIIG Securities Limited

Issuer summary

Dicker Data Limited (DDR) is an ASX listed wholesale distributor of computer hardware and related products with a 36 year history and a market capitalisation of ~$216m
DDR’s role within the IT market as a distributor is to hold inventory and provide credit terms to resellers. Global product suppliers only seek relationships with larger entities able to move large amounts of product
In April 2014 Dicker Data completed a company transforming acquisition of Express Data. This strategic acquisition has propelled the company into one of the top three IT distribution companies in Australasia, instantly transforming it from a niche player to a fully integrated market leader. Dicker Data are projecting to achieve annual revenues in excess of $1 billion in FY15
DDR has strong relationships (20 years+) with key suppliers Hewlett Packard and Cisco each accounting for ~30% of DDR’s sales. In turn, DDR provides significant sales volume for these brands with ~50% of all HP’s Australian distribution business going through DDR and ~50% of Cisco’s channel business

For more information please refer to the FIIG Research Report and the Preliminary Information Memorandum on the FIIG Wesbite.

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To contact FIIG about this article call 1800 01 01 81 or send us an enquiry

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1800 01 01 81

At FIIG, fixed income is our sole focus. We enable investors and issuers to directly access a broad range of fixed income products and services. Not only do our customers have the most up to date market research and the expertise of our in-house professionals at their fingertips, they also have access to deposit rates from an extensive range of APRA regulated banks, credit unions and building societies. At FIIG we're guided in everything we do by our clear and single-minded purpose: Creating access to fixed income investments you can trust.

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An investment in notes or corporate bonds should not be compared to a bank deposit. Notes and corporate bonds have a greater risk of loss of some or all of an investor’s capital when compared to bank deposits. Past performance of any product described on any communication from FIIG is not a reliable indication of future performance. Forecasts contained in this document are predictive in character and based on assumptions such as a 2.5% p.a. assumed rate of inflation, foreign exchange rates or forward interest rate curves generally available at the time and no reliance should be placed on the accuracy of any forecast information. The actual results may differ substantially from the forecasts and are subject to change without further notice. FIIG is not licensed to provide foreign exchange hedging or deal in foreign exchange contracts services. FIIG may quote to you an estimated yield when you purchase a bond. This yield may be calculated by FIIG on either A) a yield to maturity date basis; or B) a yield to early redemption date basis. Some bond issuances include multiple early redemption dates and prices, therefore the realised yield earned by you on the bond may differ from the yield estimated or quoted by FIIG at the time of your purchase. The information in this document is strictly confidential. If you are not the intended recipient of the information contained in this document, you may not disclose or use the information in any way. No liability is accepted for any unauthorised use of the information contained in this document. FIIG is the owner of the copyright material in this document unless otherwise specified.

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