COFFEY INTERNATIONAL LIMITED
Company Announcements Office
Australian Securities Exchange - ASX Limited
Exchange Centre
Level 4, 20 Bridge Street
Sydney NSW 2000
2 September 2014
Via e-lodgements: Sequence #743
Dear Sir / Madam
Please find attached an announcement for immediate release to the market.
.
Yours faithfully
Company Secretary
Coffey International Limited
ABN 16 003 835 112
Level 19, Tower B
799 Pacific Highway
Chatswood NSW 2067
Australia
t: +61 2 9406 1000 f: +61 2 9406 1002
coffey.com
ASX Announcement and Media Release 2 September 2014 Coffey to undertake unsecured corporate bond offering
Coffey International Limited (ASX: COF) (Coffey) will undertake an unsecured corporate bond offering to raise
$40 million.
The bond offering will increase the tenure of Coffey's debt maturity profile and diversify its debt funding sources. The net proceeds of the offering will be used to repay existing bank debt.
The bond offering has the support of Coffey's bank. When the bond offering is completed, bank facilities will be reduced by the net amount raised and extended for a further 18 months from February 2016 to September
2017.
The Lead Arranger for the transaction is FIIG Securities Limited.
The bond offering is only open to eligible professional and sophisticated investors. No prospectus or other disclosure documents in relation to the bond will be lodged with the Australian Securities and Investment Commission or any other regulatory authority.
Managing Director John Douglas said the bond offering is in support of Coffey's focus on debt reduction, which had seen gross debt fall to $77 million in June 2014. This compared to $88.7 million for the previous year and was down from a high of $150.8 million in FY2011.
"Driving down debt was one of our key achievements in FY2014 and we are committed to building on this strength," Mr Douglas said.
"The bond issue will deliver a more balanced debt profile managed over a longer timeframe. It diversifies our funding sources and gives us greater certainty over the short to medium-term."
"Together with our recent return to profit, this gives us the right base on which to grow when opportunities emerge."
FIIG Securities CEO Mark Paton said the company was pleased to assist Coffey to diversify and lengthen the duration of its debt funding.
"Coffey's bond offering is another positive development for the expanding Australian bond market for mid- sized corporates," Mr Paton said.
For full terms and conditions of the offering please refer to the Information Memorandum to be lodged with the ASX once the terms have been finalised. This Information Memorandum is not a prospectus or other disclosure document for the purposes of the Corporations Act 2001 and, as noted above, the offering is only open to eligible professional and sophisticated investors.
A summary of the key terms of the proposed bond offering is set out below:
Issuer | Coffey Corporate Pty Limited |
Guarantor | Coffey International Limited and certain of its subsidiaries |
Eligible investors | The offering is only available to investors who qualify as professional and sophisticated investors as prescribed in and in accordance with Part 6D.2 of the Corporations Act 2001 |
Type | Floating Rate Medium Term Notes (the Bond) |
Status and ranking | The Bond will be direct, senior, unsecured and unsubordinated obligations of the Issuer |
Denominations | The Bond will be issued in denominations of A$1,000, subject to a minimum initial subscription of A$50,000 |
Coffey International Limited ABN 16 003 835 112
Indicative coupon | 4.65% per annum over 90 day Bank Bill Swap Rate (BBSW), payable quarterly in arrears |
Indicative term | 5 years |
Rating | The Bond will not be rated by any rating agency |
Negative pledge and other covenants | The Bond will include a negative pledge and certain covenants, including Issuer and Group financial indebtedness incurrence covenants and limits on the quantum of cash distributions. |
Telephone: 1800 010182
Website: www.fiig.com.au
For further information contact:
Investor contact: Media contact:
Chris Bowen
Investor Relations Consultant
+61 418 144 860
Joeley Pettit
Corporate Affairs Manager
+61 407 061 421
Every Coffey relationship is built on trust.
Trust that's hard-earned through our proven expertise, our depth of global experience and our commitment to stay one step ahead.
Our specialists in geoservices, international development and project management work in partnership with our clients across the globe.
We create value throughout the project lifecycle in the mining; oil and gas; transport infrastructure and property industries.
We deliver vital international aid projects for our clients.
Our united group of specialists take enormous pride in collaborating with our project partners. By digging deeper. Thinking smarter. And seeing further.
All so we can deliver the smartest solutions, every time. Visit coffey.com
FIIG Securities Limited, which is licensed by the Australian Securities and Investment Commission (ASIC), is Australia's largest specialist fixed-income broker. FIIG offers private investors access to Australia's widest range of domestic and international corporate bonds through its ground-breaking DirectBonds service.
FIIG has more than $11 billion in term deposits and corporate bonds under advice in its short-term money market and custody business. The company has offices in Sydney, Melbourne, Brisbane and Perth.
Coffey International Limited ABN 16 003 835 112
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