The MCP Income Opportunities Trust (MOT) is a listed investment trust (LIT) designed to provide investors with access and/or exposure to the Australian multi-asset private credit universe (Prospective ASX Code: MOT). Private credit is a broad asset class that includes investments spanning the entire capital structure, from senior secured loans through to equity-like investments. Private credit is a major pillar of the Australian corporate debt market but has historically been restricted to major global banks and institutional investors. For this reason, MOT offers a unique investment opportunity and exposure to the higher-yielding aspects of corporate credit that are otherwise not accessible for retail investors. Specialist expertise is required to operate in this market and the Metrics Credit Partners’ (Metrics) Investment Team is comprised of highly- skilled debt specialists with a strong history of originating, structuring, arranging and managing private debt to Australian companies alongside banks and institutional investors.
The investment objective of the Trust is to provide attractive risk-adjusted returns (including opportunistically delivering upside gains) while retaining a focus on capital stability, active risk management and downside capital preservation. The Trust is targeting a total net return of 8-10% p.a. (net of fees and expenses) with cash income distributions payable quarterly in arrears, with a target 7% p.a. quarterly cash yield. Similar to Metrics’ Master Income Trust (MXT)(which invests in three Metrics wholesale funds via the MCP Wholesale Investment Trust), the Trust will initially invest in the Metrics Wholesale Income Opportunities Trust which will in turn invest in four wholesale private debt funds managed by Metrics. The Trust is expected to list and commence trading on 29 April 2019 at an indicative Net Asset Value (NAV) of $2.00 (equal to the issue price of $2.00 per unit). The Trust Company (RE Services) Limited will serve as the Responsible Entity.
Summary details of the transaction are listed in the table below:
|
Product Type |
Listed Investment Trust |
Asset Class |
Fixed Income / Alternatives |
|
Issue Size* |
$300,000,000 |
Sub-Asset Class |
Private Debt / Equity |
|
Net Asset Value** |
$2.00 |
Investment Manager |
Metrics Credit Partners Pty Ltd |
|
Fixed / Floating |
Fixed and Floating |
Responsible Entity |
The Trust Company (RE) Services Ltd |
|
Payment Frequency |
Quarterly |
Custodian |
Perpetual Corporate Trust Ltd |
|
Target Total Return*** |
8 - 10% p.a. |
Administrator / Unit Registrar |
Mainstream Fund Services Pty Ltd |
|
Target Cash Return |
7% p.a. |
Offer Opens |
12 March 2019 |
|
Franking Credits Inclusive |
No |
Offer Closes |
12 April 2019 |
|
ASX Listed |
Proposed (ASX: MOT) |
Allotment Date |
23 April 2019 |
|
Convertible |
No |
Commences Trading on ASX |
29 April 2019 |
|
GICS Sector |
Investment Trust |
First Payment Date**** |
After 30 June 2019 |
* Issue size subject to change.
** Pro-forma Net Asset Value per unit subject to change.
***First and ongoing distributions are targeted at 7% p.a. cash
return but may not be achieved.
**** First distribution date is targeted as post the quarter ending 30/06/2019.
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