PMP Finance Pty Ltd is a fully owned subsidiary of PMP Limited (“PMP”). PMP is the largest commercial printer in Australia and NZ. Its principal activities are commercial printing, letterbox delivery and magazine distribution services. PMP is seeking to raise $35m to $40m in senior unsecured notes to repurchase and/or fully repay their existing 8.75% pa Oct 2017 unsecured Notes. The new Notes offer a fixed return (paid semi-annually) of 6.43% p.a. for four years, callable at the company’s option after two years at $102 or after three years at $101
The issuer
PMP was listed on the ASX in 1991 and is the largest commercial printer in Australia and NZ. Its principal activities are commercial printing, letterbox delivery and magazine distribution services. PMP is ranked 1st or 2nd in each of its product segments and is the only one-stop print and distribution house in Australia.
PMP is Australia’s largest heat set printer and accounts for approximately 37% of the total market (cold set printing is the process for newspapers, heat set is for catalogues and glossy printing). PMP also has a 35% share of the letterbox distribution market distributing over 2.3bn catalogues annually. PMP has a blue-chip customer base including Bauer Media, Woolworths and Metcash.
For more information about PMP please visit their website
or go to www.asx.com.au (ASX: PMP).
The offer
PMP Finance Pty Limited (ABN 84 053 814 976) ("PMP Finance") to issue A$35,000,000 to A$40,000,000 of senior unsecured and unsubordinated Notes, guaranteed by its parent PMP Limited (ABN 39 050 148 644) (“PMP”) and certain subsidiaries of PMP.
PMP Limited (ASX:PMP) has announced to the ASX the offer of a four year, fixed rate, senior unsecured and unsubordinated note issue ("Notes") with a fixed interest rate of 6.43% per annum, payable semi-annually in arrear, available exclusively through FIIG Securities Limited ("FIIG"). PMP is seeking to raise $35,000,000 to $40,000,000 in order to repurchase and/or repay their existing 8.75% October 2017 Note issue.
FIIG is the Sole Lead Arranger for this transaction and the Notes are available to Wholesale Clients only (pursuant to the Corporations Act 2001 (Cth)), with an initial minimum subscription of A$50,000 and in increments of A$1,000 thereafter.
For more information
See the Preliminary Information Memorandum dated 7 September 2015, which is subject to completion, includes the draft terms and conditions of the Notes. A summary of the Notes is included below in "Notes summary" and a Research Report has also been made available.
Notes summary:
- The Notes have a four year term with interest paid semi-annually in arrear
- The Notes will pay a fixed rate of interest of 6.43% pa
- The Notes (and the guarantee from the Guarantors) rank as senior unsecured and unsubordinated obligations of the Issuer and the Guarantors (including PMP) respectively
- Investors have a put option at 101% of the face value of the Notes upon a change of control of PMP
- The Issuer may call some or all of the Notes prior to Maturity at a premium to the Note face value as determined in the Preliminary Information Memorandum
- The senior secured lenders receive a priority payment to the Notes only in the event of a wind up. All ongoing obligations for payment of interest and principal to the senior secured lenders rank equally with the Notes. Non-payment of principal and interest to the senior lenders will amount to an event of default of the Notes also
- The Notes benefit from a covenant package that has limits on PMP’s ability to borrow in the future, as well as covenants present in the secured facility. The Notes are structured in line with similar bond issues in the global high yield market and provide key structural benefits for investors when compared to recent ASX listed corporate hybrid transactions
- The Notes are not listed on an exchange or rated by a ratings agency
To apply contact your FIIG Representative or phone 1800 01 01 81.