MYOB in $A125m capital raising

Tim Reed: An opportunity for investors

Reducing debt and securing an acquisition pool of capital are the goals behind accounting software firm MYOB's $A125 million listed note offer.

The $A1.2 billion, 2011 sale of the accounting software firm to its second private equity firm, US-based Bain Capital, was financed by a $A530 million five-year loan.

In a statement this morning, the company says MYOB Finance Australia wants to raise $A125 million, with the ability to raise less or more.

The offer is being made to institutional investors, retail broking firms and the Australian and New Zealand public.

As expected, the subordinated notes will have a five-year maturity and pay a floating rate between 6.7 and 6.9 percentage points over the bank rate, at an initial minimum of 10%. 

The MYOB statement says the money will be used "partly" to repay debt and make a capital return to Bain Capital, "who may reinvest those proceeds in future product development or for acquisitions by MYOB, return it to its ultimate owners, or use the proceeds itself at its discretion".

The issue price is $A100 per note and the minimum is $A5000.

A prospectus has been lodged with ASIC, a bookbuild will take place on December 3 and the offer opens the following day.

Notes are expected to be issued on December 20, with ASX trading to start on December 21.

MYOB’s chief executive Tim Reed says the notes offer gives investors the opportunity to get a slice of a leading business management company in Australia and New Zealand.

"MYOB generates strong cashflow and benefits from a high proportion of recurring revenue.

"Our recent investment in cloud technologies, such as the MYOB Live product suite, is an important part of our strategy to grow our client base and further strengthen our market position as an online solutions provider.”

The capital raising is led by Deutsche Bank, Morgan Stanley and UBS, with ANZ Securities, Macquarie Capital and Westpac Institutional Bank.

This article is tagged with the following keywords. Find out more about My Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7858 -0.0027 -0.34%
AUD 0.9116 0.0032 0.35%
EUR 0.6316 -0.0059 -0.93%
GBP 0.5004 -0.0038 -0.75%
HKD 6.0935 -0.0262 -0.43%
JPY 92.9600 0.0740 0.08%

Commods

Commodity Price Change Time
Gold Index 1201.1 7.690 2014-11-21T00:
Oil Brent 78.6 -0.120 2014-11-21T00:
Oil Nymex 76.5 0.710 2014-11-21T00:
Silver Index 16.4 0.260 2014-11-21T00:

Indices

Symbol Open High Last %
NZX 50 5471.7 5471.7 5471.7 -0.34%
NASDAQ 4725.2 4755.0 4713.0 0.89%
DAX 9722.3 9832.4 9732.5 0.54%
DJI 17812.6 17855.3 17719.0 0.04%
FTSE 6750.8 6764.0 6750.8 -0.31%
HKSE 23883.3 23936.3 23437.1 1.95%
NI225 17285.7 17381.6 17300.9 0.33%