Coffey International to carry out unsecured bond offering

Coffey International will carry out an unsecured bond offering to raise $40 million.

According to the company the offering will increase the tenure of Coffey's debt maturity and diversify its debt funding.

Once the bond offering is completed bank facilities will be reduced by the net amount raised, and extended for an additional 18 months from February 2016 to September 2017.

FIIG Securities will be the Lead Arranger for the transaction.

However, Coffey did state the bond offering is open only to 'sophisticated investors'.

Coffey managing director John Douglas stated that the bond offering is part of the company's focus on debt reduction, which has already seen business debt drop to only $77 million in June 2014, down from $88.7 million last year, and the debt ceiling of $150.8 million reached in FY2011.

"Driving down debt was one of our key achievements in FY2014 and we are committed to building on this strength," Douglas said.

"This 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."

The move was welcomed by FIIG Securities CEO Mark Paton, who called the offering "another positive development for the expanding Australian bond market for mid-sized corporates".

The bond will be issued in denominations of $1000, subject to a minimum initial subscription of $50 000.

The bonds have a term of five years, and are not rated.


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