FIIG - The Fixed Income Experts
Case Study - McPherson’s Limited

Case Study - McPherson’s Limited

Issue Date

March 2015

Amount

$30m Series A
$30m Series B

Maturity

31 March 2019
31 March 2021

Term

4 years call after 2
6 years call after 3

Coupon

BBSW+ 430bps
7.10% (Fixed Rate)

About the Issuer

McPherson’s is an ASX-listed consumer products company which markets and distributes leading Australian housewares, personal care, home appliance and household consumable products. The company owns a diversified portfolio of well-known brands including Manicare, Lady Jayne, Dr LeWinn’s and also manages some significant brands for overseas agency partners such as Procter & Gamble (Hugo Boss, Dolce & Gabbana & Gucci fragrances) and Trilogy

The issuer need

In the years leading up to the Issue, McPherson’s had undertaken a series of acquisitions using debt funding provided by short-term revolving bank facilities. McPherson’s was seeking a financier that would work with the company to elongate its debt profile, diversify its funding sources away from the existing bank facilities and look to reduce the overall reliance on bank debt over the medium term.

The FIIG solution

FIIG was able to work closely with McPherson’s to issue the bond to the FIIG investor network. The terms of the bond allowed McPherson’s the flexibility to both diversify its funding base and lengthen the duration of its debt funding.

The dual-tranche Fixed and Floating Rate structure optimised the structuring flexibility in both tenor and interest rate hedging protection for McPherson’s, fitting within its broader capital and risk management objectives whilst also providing additional diversity of bond options for investors.

Client testimonial

McPherson’s Managing Director Paul Maguire said “We are pleased with the terms of the offering given the various benefits derived for McPherson’s, including greater financial flexibility, extended tenure, diversification and a broadening of our capital base”.

Talk to us
Daniel Jones Director, Debt Capital Markets



Daniel Jones
Head of Debt Capital Markets

+61 436 944 566
Daniel.Jones@fiig.com.au

FIIG Debt Capital Markets

FIIG has a proven track record of opening the Australian bond markets, having raised over $3.3bn of predominantly unrated bond funding across almost 100 issues.

The Debt Capital Markets team arranges long term, flexible AUD bond financing for rated and unrated Australian and New Zealand corporates. The DCM team also provides debt advisory services focused on optimising capital structures and diversifying funding options.

If you would like to learn more about how FIIG can assist in the growth of your business...

  Contact Erryn Lloyd-Jones on
(02) 9697 8778