FIIG - The Fixed Income Experts
sct-logistics

FIIG Securities arranges Australia’s Largest Unrated Private Corporate Bond Deal

SCT Logistics (“SCT”) is Australia’s largest private rail freight operator and has been a FIIG client since 2015. Established in 1974, SCT provides a full suite of vertically integrated, national logistics services, at the core of which is Australia’s most modern rail freight operation. SCT has strong competitive advantage by virtue of its difficult to replicate assets and access rights secured over long term arrangements. SCT operates in a largely duopolistic market with Pacific National being the other key competitor, and has a very sticky customer base.

FIIG Debt Capital Markets has arranged the largest unrated corporate bond deal for a private company in Australia with a $100m, 5 year unsecured non-amortising note issue for SCT. Funding was provided across a $60m Floating Rate Note and a $40m Fixed Rate Note (collectively the “Notes”). The Notes provide SCT with long term capital to refinance the $85m 2015 FIIG-arranged unsecured notes and fund growth capital expenditure. The long term tenor of the Notes is appropriate given it matches the long term nature of the assets and associated infrastructure.

Following successful recent issues for Armour Energy, Zenith, Plenary & Merredin Energy, SCT is the latest corporate borrower to access the bond market through FIIG Securities to broaden its capital base. FIIG has provided a range of funding solutions across different sectors, including:

  • Funding diversification to refinance and/or complement existing funding lines;
  • Providing growth funding for capital expenditure and acquisitions; and
  • Optimising the capital structure through extending maturities, fixed or floating rates, and secured and unsecured funding structures.
Talk to us
Erryn Lloyd-Jones - Head of Debt Capital Markets, Private Debt
Erryn Lloyd-Jones
Head of Debt Capital Markets

(02) 9697 8778
Erryn.Lloyd-Jones@fiig.com.au

FIIG Debt Capital Markets

FIIG has a proven track record of opening the Australian bond markets, having raised over $3.0bn of predominantly unrated bond funding across 80 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