About the Issuer
CML Group Limited (“CML”) is an ASX-listed (ASX: CGR)
provider of finance, payroll and recruitment services.
CML’s two operating areas are (i) Finance, which provides
disclosed factoring (disclosed invoice finance) to small and
medium enterprises and (ii) Payroll and Other, which
provides outsourced payroll solutions, employment and
recruiting as well as immigration services. CML had a
market cap of $19m as at May 2015.
The issuer need
In 2015, CML issued $25m into the debt capital market,
utilising the funds to acquire a factoring business.
Subsequent to the issue, CML successfully grew its book in
line with expectations. To facilitate further organic growth
in its loan book and fund the acquisition of another
competitor, CML was seeking additional funding.
The FIIG solution
CML’s stated strategy for its maiden Notes issue was to
utilise them as the core debt facility and look to issue
additional tranches as the business grew. FIIG was able to
work with CML to structure an additional series of Notes to
facilitate the additional funding and inject an appropriate
level of flexibility to ensure that the issue and subsequent
tap was complimentary to the broader capital structure
and growth aspirations of the business.
“CML was previously constrained by access to appropriate
funding, being long-term and expandable. FIIG was quick
to understand CML’s needs and their support has helped
CML to accelerate its growth, both organically and through
acquisition of aligned businesses.” CEO, Daniel Riley