Media Release: MCP Master Income Trust IPO closes in excess of $500m
26 September 2017: The initial public offering (IPO) of the MCP Master Income Trust (ASX: MXT) has officially closed at approximately $515 million, making it one of the biggest fund IPOs in Australia to date.
The Offer strongly resonated with SMSF and self-directed investors looking for predictable and stable earnings, in addition to fixed income portfolio diversification.
Unitholders in MXT, which is scheduled to list on the ASX on 9 October 2017, will receive monthly cash income with a target yield of RBA cash rate +3.25% per annum (currently 4.75%) net of all fees and costs, with low risk of capital loss.
MXT, the first listed investment trust from Metrics Credit Partners (MCP), offers investors direct, diversified exposure to Australia’s corporate loan market, with exposure to a portfolio of more than 50 corporate loans, diversified by borrower, industry, and credit quality.
MCP Managing Partner Andrew Lockhart said: “Investor interest in the IPO shows strong demand from retail investors to gain access to a listed, fixed income product, which is a vital component of a balanced investment portfolio.
“Investing in corporate loans has traditionally been a market dominated by regulated banks, making it difficult for non-bank investors to access. We feel it was the unique opportunity offered by MXT that resonated most with SMSF and self-directed investors.
“The size and scale of the confirmed demand ensure we will have a highly diversified portfolio of corporate loans, and the benefits will flow back to the unitholders as the trusts operating costs will be at the lower end of the scale,” he added.
The investment portfolio will be actively managed by MCP – an Australian debt specialist fund manager that currently manages wholesale funds with assets in excess of $2 billion.
MCP is majority-owned by the investment team of Justin Hynes, Andrew Lockhart, Graham McNamara and Andrew Tremain (65%), and 35% owned by National Australia Bank.
The IPO syndicate included Grant Samuel as Financial Adviser and Pinnacle Investment Management Limited as Distribution Partner.
The Lead Arranger was CommSec, and Joint Lead Managers included CommSec, Morgans and Wilsons. Co-Managers included Bell Potter, FinClear, Ord Minnett, Shaw and Partners, SMBC Nikko Capital Markets Limited and Taylor Collison.