Another credit manager pulls capital raising

Credit fund manager Metrics Credit Partners has withdrawn an entitlement offer, citing "extreme market volatility" and will return more than A$300 million to investors. It is the second time this month a credit fund manager has abandoned a capital raising.

On March 3, Neuberger Berman withdrew a capital raising offer for its ASX-listed NB Global Corporate Income Trust, also citing extreme market volatility.

Metrics Credit Partners launched a one-for-two non-renounceable entitlement offer on January 24, seeking up to $638 million of new funds for its MCP Master Income Trust.

Earlier this week, the trust's responsible entity, The Trust Company, reported that Metrics had raised $344 million. But yesterday the company announced that it had withdrawn the offer and would return the funds raised.

In a statement to the ASX, Metrics said: "The responsible entity and Metrics have had regard to the current extreme market volatility and investors' best interests. While the trust's units have generally traded with little correlation to public domestic and international equity and bond markets, they have recently traded below the trusts NTA.

"Accordingly, the responsible entity and Metrics have decided that proceeding to settlement and completion of the offer is not, at this time, in the best interests of MXT [MCP Master Income Trust] unitholders and prospective investors."

Metrics Credit Partners has two listed funds, MCP Master Income Trust and MCP Income Opportunities Trust. Metrics originates its own loans, which are predominantly loan to local corporates.

Neuberger Berman's offer of three units for every four existing units was designed to raise up to $684.9 million.

In its statement to the ASX, the trust's responsible entity, Equity Trustees, said: "Due to extreme market volatility resulting in material discounts in the trading prices in the ASX, compared with the net tangible assets per unit, and following extension of the issue date for the allotment of units under the entitlement offer, the responsible entity advises that it has determined not to proceed with the offer."

The NB Global Corporate Income Trust invests in global high-yield corporate debt securities. The manager targets monthly distributions equivalent to a yield of at least 5.25 per cent a year, with modest growth in assets over time.

It was listed on the ASX in September 2018, with a capital raising of $413 million.