Impact Group, an unrated and private property building and development group announced that it is to issue a 5-year seniro unsecured note through FIIG Securities. The issuer is seeking to raise an indicative A$40 million with the ability to add another A$45 million in over subscriptions. Proceeds from the offer will be retire bank debt and fund growth in its homebuilding and townhouse development business..
The senior unsecured notes will pay an indicative interest rate of 8.50% and will require a minimum initial investment of $50,000 at issue. They will be distributed to new and existing FIIG Securities clients who qualify wholesale clients only.
Impact Group follows previous property sector issuers including Brisbane-based developers Sunland Group and Stockwell, Sydney-based property investment group 360 Capital and Sydney-based developer Payce.
The notes are secured by first charges over the issuer and its subsidiaries representing at least 95% of the Impact Group as well as first mortgages over four townhouse development properties.
They will also benefit from a range of maintenance covenants limiting the gearing of the Impact Group and distributions to Impact shareholders.
