About the Issuer
CCV began operations in 1984, was listed on the ASX in
1997 (ASX:CCV) and at the time of Issue had a market cap
of ~$530m. CCV is a specialty retailer and micro-financier
with a retail network of 717 stores in over 20 countries. CCV
has a diverse revenue base comprised from a broad range
of service offerings.
The issuer need
Cash converters had experienced significant growth in the
years leading up to the bond issue; with almost $80m of
debt from a single lender, the management team were
seeking a debt solution to diversify the company’s funding
sources and reduce refinance risk.
The FIIG solution
By issuing a senior unsecured $60m bond into the capital
markets, CCV was able to diversify its funding sources and
lengthen its debt maturity profile. The bond issue allowed
for their banking facilities to remain, providing greater
flexibility to expand its business through growing its loan
book and further acquisitions.
According to Chief Financial Officer, Ralph Groom,
management were surprised by how fast and efficient the
process was compared to their previous loan applications.
“With FIIG the whole raising only took two months from
start to finish, so it was a new experience for us to have a
relatively straightforward process that went quite
smoothly and without a hiccup,” Mr Groom said. “One of
the benefits for us has been having a straightforward
document that is easy to follow and understand from our
view as well as from the bondholders’ point of view. It is
also easy and painless to administer”.