MCP Master Income Trust IPO opens to investors
MXT offers investors unique access to Australia’s corporate loan market
Thursday, 10 August 2017: MCP Master Income Trust (ASX: MXT), the first listed investment trust (LIT) from Metrics Credit Partners (MCP), opened to investors today.
MXT will be the first LIT to list on the Australian Securities Exchange (ASX) dedicated to corporate lending. MXT offers direct, diversified exposure to Australia’s corporate loan market, a market dominated by regulated banks and not easy to access for non-bank investors.
The investment portfolio will be actively managed by MCP – an Australian debt specialist fund manager that currently manage wholesale funds with assets in excess of $2 billion.
MXT will provide investors with exposure to a portfolio which reflects activity in the Australian corporate loan market, diversified by borrower, industry and credit quality. MXT will have exposure to in excess of 50 individual investments immediately, with a near-term target of 75-100 individual investments.
Investors 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.
Base management fees for MXT will be equivalent to fees paid by wholesale investors, whilst an innovative fund design is expected to result in the quoted NAV at listing to be equal to the subscription price.
The initial public offering (IPO) is seeking to raise up to $500 million from investors in Australia and New Zealand at a unit price of $2.00.
The Offer is expected to close on 19 September 2017 and is scheduled to list on the ASX on 9 October 2017.
MCP Managing Partner Andrew Lockhart said MXT presents a unique opportunity for investors to access an ASX-listed fixed income investment.
“MXT offers investors exclusive access to the highly attractive risk-adjusted returns available in the corporate loan market, historically only available to regulated local and international banks.
“Fixed income is a vital component of a balanced investment portfolio. Fixed income investments offer predictable cash income with low risk of capital loss.
“We anticipate the IPO will resonate strongly with retail and SMSF investors, who have traditionally had low allocations to this asset class,” he added.
MCP, founded in 2011, is majority-owned by Justin Hynes, Andrew Lockhart, Graham McNamara and Andrew Tremain (65%), and 35% owned by National Australia Bank. The highly-experienced investment management team of MCP have a proven track record of delivering returns from direct lending to Australian corporates. MCP participates across loan, credit and debt securities market, in addition to working with borrowers and arranging with banks to structure bespoke capital solutions.
The Trust Company (RE Services) Limited, a 100% subsidiary of Perpetual Limited, will act as the responsible entity to MXT.
The IPO is supported by a strong syndicate, including Grant Samuel as Financial Adviser to MCP and Pinnacle Investment Management Limited as Distribution Partner.
The Lead Arranger is CommSec. The Joint Lead Managers are CommSec, Morgans and Wilsons.
Co-Managers include Bell Potter, FinClear, Ord Minnett, Shaw and Partners, SMBC Nikko Capital Markets Limited and Taylor Collison.
Key dates and information:
|Offer opens||10 August 2017|
|Minimum gross proceeds from the Offer||$100,000,000|
|Maximum gross proceeds from the Offer||$500,000,000|
|Broker Firm and Cornerstone Offers close||12 September 2017|
|General Offer closes||19 September 2017|
|Subscription price per unit||$2.00|
|Trading of units of the ASX||9 October 2017|
About Metrics Credit Partners
Metrics Credit Partners (MCP) is an Australian debt-specialist fund manager with significant direct lending expertise in the Australian corporate loan market.
MCP manages funds on behalf of wholesale investors seeking opportunities in credit and fixed income markets. MCP’s Investment Team has an average of 30 years’ experience in corporate and institutional lending and currently manages wholesale funds with in excess of $2 billion of assets. MCP is 65% owned by the Investment Team and 35% by National Australia Bank.