On the 27th of March 2017, equipment financier Axsesstoday (ASX: AXL) revealed it was in the final stages of completing a new secured corporate note issuance. These securities will be sold to wholesale investors only (no prospectus being issued) and are not listed on the Australian Securities Exchange.
This was followed with an announcement today detailing the group is expecting to settle the notes on the 2nd of May 2017 with a final issue size of $30 million. The proceeds are expected to fund the continuing organic growth in net receivables from equipment finance facilities. The notes pay a fixed coupon of 7.50% p.a. (payable quarterly) and mature on the 22nd of June 2021.
The notes are callable at the issuer’s option on each interest payment date from October 2018 at $102 and from October 2019 at $101.50 (together with accrued interest). The coupon will step up to 8.00% p.a. until maturity if the notes are not called on the 22nd of June 2020 at par value plus accrued interest.
Axsesstoday provides commercial equipment and vehicle finance to small and medium businesses via a distribution channel of retailers and referrers.
