FIIG Research

A new USD HY bond has been added to the DirectBond list, issued by Mercer International and maturing in 2025, it yields north of 6.00%pa. The company is a leading global market position in Northern Bleached Softwood Kraft pulp, with a diversified product range and geographical locations. We think Mercer is a good high yield income supplement in a diversified portfolio.

Mercer International Inc. (Mercer, Company) was founded in 1968 and is headquartered in Vancouver, Canada. Mercer, together with its subsidiaries, manufactures and sells northern bleached softwood Kraft (NBSK) pulp in the United States, Europe, Asia, and internationally.

The February 2019 update to our DirectBond List including new additions and our current Trading Restrictions list.

PMP Ltd (PMP, Group) is the largest integrated print and distribution company in Australia and New Zealand, producing catalogues, magazines, newspapers and books. The company has been listed on the ASX since 1991. PMP Print’s production plants are located strategically in major cities. The company offers letterbox distribution of catalogues and newspapers direct to households through its PMP Distribution business and magazine distribution directly to retail outlets through its Gordon & Gotch business. In March 2017 PMP merged with IPMG and now effectively operates in a duopoly with competitor the IVE Group. With the merger of IPMG, PMP now has a range of marketing services, which include: creative design, brand strategy, business consulting services, marketing automation, photography, videography, point-of-sale, public relations, content and social media.

Next Generation Clubs (Next Gen, or the Company) owns and operates six health clubs across Australia and in New Zealand. It has approximately 28,000 members. The clubs differentiate themselves as a higher end multi service offering with facilities including tennis and squash courts, indoor and outdoor pools, spas, saunas, café and lounge, function rooms and full service gyms.

Mallinckrodt International Finance SA and Mallinckrodt CB LLC, a direct wholly owned subsidiary are together the issuers of the notes. The issuers are wholly owned subsidiaries of Mallinckrodt Plc (Mallinckrodt, Company), a public limited company incorporated in Ireland.

Mallinckrodt International Finance SA and Mallinckrodt CB LLC, a direct wholly owned subsidiary are together the issuers of the notes. The issuers are wholly owned subsidiaries of Mallinckrodt Plc (Mallinckrodt, Company), a public limited company incorporated in Ireland.

Mallinckrodt International Finance SA and Mallinckrodt CB LLC, a direct wholly owned subsidiary are together the issuers of the notes. The issuers are wholly owned subsidiaries of Mallinckrodt Plc (Mallinckrodt, Company), a public limited company incorporated in Ireland.

JEM (Southbank) Pty Ltd (Southbank) is the financing vehicle for Axiom Education Queensland Pty Ltd (Axiom Qld). Axiom Qld was contracted by the State of Queensland to design, build and maintain facilities at the Southbank Institute of Technology in Brisbane.

Hertz Corporation is a subsidiary of Hertz Global Holdings, a multinational vehicle rental business, headquartered in Estero, Florida. It operates globally through the Hertz, Dollar and Thrifty brands from approximately 9,700 corporate and franchisee locations in North America, Europe, Latin America, Africa, Asia, Australia, The Caribbean, the Middle East and New Zealand.

Hertz Corporation is a subsidiary of Hertz Global Holdings, a multinational vehicle rental business, headquartered in Estero, Florida. It operates globally through the Hertz, Dollar and Thrifty brands from approximately 9,700 corporate and franchisee locations in North America, Europe, Latin America, Africa, Asia, Australia, The Caribbean, the Middle East and New Zealand.

RWH Finance Pty Ltd (RWH) is the financing vehicle for RW Health Partnership Pty Ltd (RWHP), which contracted with the Victorian State government (State) to design, construct, operate and maintain various facilities at the Royal Women’s Hospital, in Melbourne under a Public Private Partnership (PPP) arrangement.

CenturyLink is a global, facilities-based telecommunications provider for residential and business customers. It is the third-largest provider of telecommunications services in the U.S. About 74% of its revenue comes from business customers, including 37% from large enterprise and global commercial accounts.

CenturyLink is a global, facilities-based telecommunications provider for residential and business customers. It is the third-largest provider of telecommunications services in the U.S. About 74% of its revenue comes from business customers, including 37% from large enterprise and global commercial accounts.

Impact Group Aus Pty Ltd (Impact) was founded in 1996 and has grown to become one of Queensland’s largest residential home builders. Impact has a vertically integrated business model which extends from development through to property management allowing Impact to profit at each stage. The company is privately owned by three family groups.

Emeco Pty Ltd (the issuer of the bonds) is a subsidiary of Emeco Holdings Limited (Emeco, Company, Group). Headquartered in Perth, Western Australia, Emeco is a rental provider of heavy earthmoving mining equipment to the global mining industry from major operations across Australia, with customers ranging from multi-national blue chip miners and contractors, to small independents. Emeco’s customers are involved in a broad range of commodities, including thermal and metallurgical coal, oil sands, gold, iron ore and copper. The business generates earnings mostly from dry equipment rental and maintenance services.

US HY is inherently volatile and various factors (systemic and cyclical) influence credit spreads of the underlying bonds, meaning a month of sharp correction is often followed by outstanding excess return. This in turn means that investors need to be patient with their HY holdings, especially in times like now where price movement is market driven.

2019 comprehensive review for WA Stockwell.

All our recent macro and sector views for 2019, as well as our latest reports on the 28 companies for which we have recommendations.

Civic Nexus Finance Pty Ltd (CNF) is a wholly owned finance vehicle of Civic Nexus Pty Ltd as trustee of the Civic Nexus Unit Trust (Civic Nexus). Civic Nexus is contracted with Public Transport Victoria (PTV) to finance, design, construct and operate the Southern Cross Station (Station) in Melbourne, Australia under a private public partnership (PPP) arrangement.