SCT Logistics (SCT), a national multi-model transport and logistics company launched a dual tranche deal through FIIG Securities. The unsecured, unsubordinated, unrated, Australian dollar fixed and floating rate note offering is available to wholesale investors only with a minimum subscription of $50,000
The issuer
SCT Logistics (‘SCT’) is Australia’s largest private rail freight operator with a 40-year operating history. SCT provides a full suite of vertically integrated, national logistics services, at the core of which is Australia’s most modern rail freight operation and national terminal footprint. The business was established in 1974 as a rail line-haul service by Peter Smith, and ownership of the business has remained with the Smith family.
SCT runs 11 weekly services over three rail routes, the majority of earnings generated from the Australian east-west coast corridor (40% market share) and the emerging north-south corridor. Industry dynamics are favourable on long haul routes, with rail approximately four times more fuel efficient than road on the east-west corridor. SCT operates Australia’s longest general freight train at 1.8km which is able to move 6,000 tonnes of freight.
The majority of goods transported are fast moving consumables with major clients including Woolworths and Fosters. The top 20 clients have an average length of relationship with SCT of 15 years.
The structure
SCT is seeking to raise a minimum of $75m with oversubscriptions to $85m in unsecured notes to replace existing secured equipment finance debt and for general corporate purposes. The notes are offered in two series:
Series A Notes: $30m (minimum) to $35m Floating Rate Notes (FRN’s) due June 2019. Callable at the company’s option after two years at $103 or after three years at $101.50
Series B Notes: $45m (minimum) to $55m Fixed Rate Bonds due June 2021. Callable at the company’s option after four years at $103 or after five years at $101.50
The Notes will not be listed on the ASX. You can view the full research report by following the link in related articles. Please note, the offer is available to wholesale clients only so you will be required to login to your FIIG account.
For more information, including pricing, please contact your FIIG dealer or call us on 1800 01 01 81.