Capitol Health - FIIG Debt Capital Markets

Case Study - Capitol Health

Issue Date

May 2016

Amount

$50 million

Maturity

10 May 2020

Term

4 years

Coupon

8.25%

About the Issuer

Capitol (ASX: CAJ) is a large community based (nonhospital/non-aligned) diagnostic imaging (DI) provider that employs over 700 staff and contractors across 70 facilities in Victoria and NSW. Capitol is the 5th largest participant in the DI market with a 6% market share of its addressable market. It was established in 2001, listed in 2007 (through a reverse takeover) and had a market capitalisation of c$100m as at April 2016.

The issuer need

During 2015 Capitol made several large acquisitions for c$150m funded by a combination of bank debt and equity raisings. After this there was a requirement to re-set Capitol’s debt funding structure to more adequately address the needs of the business going forward. Capitol sought the security of longer term financing to effectively mitigate the risk associated with refinancing its existing facilities.

The FIIG solution

By issuing a Senior Unsecured bond into the capital markets, Capitol was able to term out a portion of their capital structure, diversify its funding profile and reduce the refinance risk associated with the existing banking facilities. The group also gained access to a new source of capital and exposure through the FIIG distribution network.

Client testimonial

Capitol Health Managing Director John Condi said “We continue to have a very strong relationship with our senior lender National Australia Bank, but the note issue demonstrates our diligent approach to capital management and determination to diversify our funding sources.”

Erryn Lloyd-Jones - Head of Debt Capital Markets, Private Debt
Erryn Lloyd-Jones
Head of Debt Capital Markets

(02) 9697 8778
Erryn.Lloyd-Jones@fiig.com.au

A proven track record of opening the Australian bond markets

FIIG has a proven track record of opening the Australian bond markets, having raised over $2.8bn of predominantly unrated bond funding across more than 70 issues.

The Debt Capital Markets team arranges long term, AUD bond financing for rated and unrated Australian and New Zealand corporates. Our funding solutions enable mid-market corporates and large private companies to diversify their funding options and optimise their capital structures.

If you would like to learn more about how FIIG can assist in the growth of your business...

  Contact Erryn Lloyd-Jones on
(02) 9697 8778

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