On 15 June 2015 SCT Logistics (Private Company) announced a new transaction with the sole arranger being FIIG Securities. The transaction is an unrated senior unsecured deal with the issuer looking to raise $75-85 million in a two part offering. Sources suggest that the offering is a $30 million floating rate tranche (4 year) and a $45 million fixed rate tranche (6 Year). According to the issuer purpose of the deal is to diversify funding and pay down existing debt.
SCT Logistics is an interstate transport and logistics company operating rail and road haulage. Established in 1974, SCT Logistics is managed by its founder Peter Smith. In effect the operating business is a smaller version of QR National with facilities in Brisbane, Sydney, Parkes, Melbourne, Adelaide and Perth.
The group has been busy period over the past 6 months with a $205 million refinancing of its property assets in December 2014 and in March 2015 it announced the North-East Rail hub at Logic Estate in Wodonga. The Victorian Government has committed some funds into SCT Logistics to develop the new rail hub which is designed to increase rail freight between Melbourne and Brisbane. However, there is some opposition to the funding (our understanding it is a public-private partnership between SCT, local council, state and federal goverments) especially when the largest tentant on the estate is a Woolworths distriibution centre.
Contact FIIG Securities for more information.
