Axsesstoday sells unrated bonds to fund lease finance business
Yesterday, specialist finance group Axsesstoday Limited closed a new A$30 million note offer. Axsesstoday is a Melbourne-based provider of business and equipment funding for small-to-medium size enterprises in hospitality and other niche sectors. This is the third time Axsesstoday has issued into debt capital markets, but the first time since the company listed on the ASX in December. All issues were arranged by FIIG Securities Limited, Australia's largest specialist fixed-income dealer. The notes will pay an annual fixed coupon of 7.50 per cent and are due on 22 June 2021. The issue was sold to FIIG's client base of wholesale and sophisticated investors and provides a third layer of debt into Axsess' capital structure. These notes will rank in priority behind the company's existing $40 million subordinated notes, due 9 October 2021, and behind their current bank facilities. The transaction is part of its strategic debt diversification plan and to fund continued growth of the company's underlying equipment financing business, which has more than tripled in the last 18 months, to $89 million as at 31 December 2016. FIIG Securities head of debt capital markets, John Ricciotti, said Axsesstoday's strong credit profile, combined with its listing on the ASX made it an attractive proposition for clients.