New Issue: Civmec Secured Notes

Civmec Holdings Pty Ltd (a wholly owned subsidiary of Civmec Limited [ASX: CVL]) today announced the launch of its issue of Civmec Secured Notes (ISIN: To be Confirmed). The offer is intended to raise $60 million, with an ability to take-over subscriptions. Net proceeds will be used for refinancing existing facilities and to help fund the capital expenditure required to construct the specialist Henderson shipbuilding facilities.

These securities are structured as direct, senior secured notes and interest payments are non-discretionary, fixed rate and paid semi-annually in arrears. The yield on this security is guided to be between 7.00% - 7.25% p.a. The security will be issued from the non-operating subsidiary, although the Group's ultimate holding company (Civmec Limited) has given a guarantee. Investors are protected a covenant package including a negative pledge, limitations on total debt incurrence and restrictions to shareholder payments.

The issuer has the right but not the obligation to redeem some or all of the Notes prior to maturity at 102% (30 November 2020), 101.5% (30 May 2021), 101% (30 November 2021) or 100% (30 May 2022) plus any accrued interest. Bondholders may request early redemption of the Notes on the occurrence of a Change of Control event (101% plus accrued interest). The legal final maturity date of the Notes is 30 November 2022.

Summary of the Transaction:

Product Type

Corporate Bonds

Last Price


Issue Size*




Par Value


Capital Price




Running Yield

[7.00 - 7.25%]

Payment Frequency

Semi Annual

Yield to Maturity

[7.00 - 7.25%]

Current Distribution

[7.00 - 7.25%]

First Call Date

30 November 2020

Issue Margin/ Coupon

[7.00 - 7.25%]

Next Payment Date

30 May 2019

Franking Credits Inclusive


Legal Final Maturity

30 November 2022

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