Moneytech Finance (“M Finance”), an
indirect wholly owned subsidiary of Source Financial Group, last week signed a
deal with FIIG Securities Limited in which FIIG agreed to act as lead manager
and initial subscriber for M Finance’s AUD$25 million offering of Australian
Dollar Subordinated Notes. It is anticipated that the offering will close April
10, 2015.
According to Source Financial’s
recent 8-K filing, the offering was not registered in Australia and was made
only to individuals and entities in Australia to whom it is lawful to make an
offering of subordinated notes without disclosure under the Corporations Act of
Australia. Source Financial currently does not intend to register or sell the
subordinated notes for trading within the United States.
The subordinated notes will bear
interest at a rate of 4.65% per annum plus the Bank Bill Swap rate, payable
quarterly in arrears, due and payable in full in 2022.
Repayment of the subordinated notes
has been guaranteed by Moneytech Limited, the corporate parent of M Finance Pty
and Moneytech Services Pty Ltd. Moneytech Limited, M Finance and Moneytech
Services, collectively the guarantors, are a direct or indirect wholly owned
Australian subsidiary of Source Financial.
BNY Trust Company of Australia will
serve as the trustee pursuant to a Note Trust Deed to be executed and delivered
at closing. The subordinated notes will not be secured by liens on any assets
of M Finance or the guarantors; Finance and the guarantors will grant a
“negative pledge” under which they will agree not to grant any third party a
lien on their assets.
M Finance currently has an
asset-backed wholesale debt facility (“RPA”) with its senior financier. The
borrowing limit under the RPA is currently AUD$50 million and subject to
interim agreed upon limits determined by various tests and covenants. As at
June 30, 2014, the total amount drawn against the facility was AUD$27,746,303.
The facility has been renewed until December 31, 2015, and the interim agreed
upon credit limit is currently AUD$40 million. Upon issue of the subordinated
notes, the interim agreed upon credit limit will be reduced to AUD$25 million,
with a minimum draw requirement of AUD$20 million.
Source Financial and its subsidiaries
provide technology-driven financial solutions and services to consumers and
businesses.
For more information on the company
or its subsidiaries, visit www.sourcefinancial.com
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