The MCP Master Income Trust (ASX: MXT) (Trust) successfully raised in excess of $500 million and listed on the ASX in early October 2017.
The Trust provides investors with direct exposure to the Australian corporate loan market – a market that has traditionally been dominated by banks and is not easily accessible for non-bank investors. It provides this exposure through investments in and alongside wholesale funds managed by Metrics Credit Partners Pty Ltd (MCP), a debt-specialist fund manager with approximately $2.7 billion assets under management.
MXT offers investors monthly income from a portfolio of floating rate Australian corporate loans diversified by borrower, industry and credit quality, which underpins the stable capital value of its units. Being an ASX listed trust, with market liquidity available by trading units on the exchange, MXT is an attractive investment opportunity relative to other fixed income options.
The trust is now seeking to raise up to $381 million from existing and new investors to meet borrower demand, which MCP believes will help it best deliver on the investment objectives of the Trust (as disclosed in the PDS).
The Offer contained in the PDS comprises an issue of new Units to raise up to approximately $303.6 million1 (before Offer costs). The Offer comprises:
- a pro rata non-renounceable entitlement offer under which Eligible Unitholders are invited to apply for 1 New Unit for every 1.7 existing Units held on the Record Date at $2.00 per New Unit; and
- an offer of New Units to institutional and retail investors pursuant to the Shortfall Offer at $2.00 per New Unit,
each of which is described in greater detail in section 2 of the PDS.
All New Units issued under the Offer will rank equally with existing Units including full entitlement to all distributions paid after the Issue Date. The Responsible Entity may also offer Units for issue under the PDS under the Oversubscription Facility and the Shortfall Offer. See Sections 2.4.6 and 2.5 of the PDS.
Proceeds raised from the Offer will be invested in opportunities consistent with the objectives and target return of the Trust. This will enhance MCP’s ability to manage a diversified investment portfolio and reduce management costs for Unitholders.
Full details of the Offer are set out in the PDS.
 The Shortfall Offer, which will allow new investors to participate in the Offer, may include an invitation to subscribe for up to 38,713,527 million Units over and above the shortfall from the Entitlement Offer (representing that number of Units which can be issued under the Trust’s available placement capacity under ASX Listing Rule 7.1). In that event, the number of New Units issued under this PDS will be up to 190,531,283 Units and the maximum gross proceeds from the Offer will be up to $381,062,566.
MCP Master Income Trust (ASX:MXT) Capital Raising
Due to strong investor demand the MCP Master Income Trust (the first ASX listed fund giving investors access to a professionally managed portfolio of corporate loans) is now seeking to raise an additional amount of approximately $300 million via an entitlement offer to existing investors.
One way to hedge against inflation
Preserving capital whilst maintaining real income in an inflationary environment is an important challenge for investors. Unlike many fixed income assets where capital value falls as rates rise, the income received from corporate loans moves in line with changes in the RBA cash rate.
How to Invest
Full details of who is eligible and how to invest are in the PDS.
Please note that there is no general public offer of New Units under the Shortfall Offer. Investors wishing to apply for New Units must do so through a Broker with a firm allocation of New Units (determined by the Responsible Entity in consultation with the Joint Lead Managers).
Existing Unitholders (Entitlement Offer and Oversubscription Facility)
If you are an existing Unitholder, please follow the steps below:
- Download the PDS and decide if the Offer is appropriate for you.
- Follow the instructions on your Entitlement and Acceptance Form and Shortfall Offer Application Form (including the biller code and your unique Customer Reference Number (CRN)). You should receive your Entitlement Acceptance Form by Friday 9 March 2018.
- Make your payment via your preferred option:
BPAY® payments can only be made in AUD$. If you use BPAY®:
- You do not need to submit the Entitlement and Acceptance Form, but are taken to have made the declarations on it; and
- If you do not pay for your full Entitlement, you are deemed to have taken up your Entitlement in respect of such whole number of New Units as is covered by your Application Monies.
- If you pay for more than your full Entitlement, you are deemed to have applied for Additional New Units equivalent to the amount paid which exceeds your full Entitlement divided by the Offer Price of $2.00.
Please make sure you use the biller code and unique CRN on your form. If you receive more than one form (i.e. you have multiple holdings), please only use the CRN specific to the Entitlement on that form. If you inadvertently use the same CRN for more than one of your Entitlements, you will be deemed to have applied only for New Units on the Entitlement to which that CRN applies.
Cheque, bank draft or money order
Please complete your Entitlement and Acceptance Form in accordance with the instructions and return it with your cheque, bank draft or money order in A$ payable to ‘MXT Entitlement Offer’ and crossed ‘Not negotiable’. Your cheque, bank draft or money order must be:
- For $2.00 multiplied by the number of New Units and Additional New Units (if any) that you are applying for; and
- Drawn on an Australian financial institution or an Australian branch of a financial institution.
You should ensure that sufficient funds are in your account(s) on the day of receipt. If the amount of your cheque, bank draft or money order is insufficient to pay for the number of New Units and Additional New Units (if any) you have applied for, you will be taken to have applied for such lower number of whole Units as your Application Monies will pay for.
Your payment needs to be received by the Unit Registry by no later than 5.00pm (Australian Eastern time) on 29 March 2018. Cash payments will not be accepted. Receipts will not be issued.
Please send your form to:
MXT Entitlement Offer
C/- Mainstream Fund Services Pty Limited
GPO Box 4968 Sydney NSW 2001
Please note: There is no online application for existing investors. Existing investors who are unsuccessful with their application will have their money returned.
New Investors (Shortfall Offer only)
If you are a new investor, please follow the steps below:
- Download the PDS and decide if the Offer is appropriate for you.
- Follow the instructions in Section 2.5 of the PDS to apply for New Units under the Shortfall Offer.
Please note: New Units will only be allocated to investors under the Shortfall Offer to the extent available and in accordance with the allocation policy set out in the PDS.
Disclaimer and disclosure
This website is issued by The Trust Company (RE Services) Limited ABN 45 003 278 831 AFSL 235 150 (Perpetual) as responsible entity of MCP Master Income Trust (the Trust). This website is prepared by Metrics Credit Partners Pty Ltd ABN 27 150 646 996 AFSL 416 146 (MCP) as the investment manager of the Trust.
The information provided in this website is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision, you should consider the current product disclosure statement (PDS) of the Trust and assess whether the Trust is appropriate given your objectives, financial situation or needs. If you require advice that takes into account your personal circumstances, you should consult a licensed or authorised financial adviser.
Neither Perpetual nor MCP guarantees repayment of capital or any particular rate of return from the Trust. Neither Perpetual nor MCP gives any representation or warranty as to the reliability, completeness or accuracy of the information contained in this website. All opinions and estimates included in this website constitute judgments of MCP as at the date of website creation and are subject to change without notice. Past performance is not a reliable indicator of future performance.