FIIG - The Fixed Income Experts
Dicker Data - FIIG Debt Issue

Case Study - Dicker Data

Issue Date

March 2015

Amount

$40m

Maturity

26 March 2020

Term

4 years

Coupon

FRN+ 490bps over BBSW

About the Issuer

Dicker Data (ASX:DDR) is a leading Australian wholesale distributor of computer hardware and related products which has operated in Australia since 1978. In April 2014 Dicker Data, the 4th largest IT distributor in Australia acquired Express Data, the 3rd largest for $65m (5x EBIT multiple). The acquisition made Dicker Data the 2nd largest player in the domestic market behind the global group Synnex, with an estimated 22% market share and gave its access to the NZ market (8-9% market share).

The issuer need

Following the acquisition of Express Data there was a requirement to re-set Dicker Data’s debt funding structure to more adequately address the growth funding needs of the business in the medium to longer term. Dicker Data 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 $40m bond into the capital markets, Dicker Data was able to diversify its funding sources and structure a more suitable debt maturity profile. The size of the bond issue enabled Dicker Data to further utilise its existing facilities to fund growth its business. It also gained access to a new investor base with almost 450 investors purchasing the bond in the primary issuance.

Client testimonial

Chairman and CEO David Becker said, “This bond issue is an important initiative for our company which reflects our determination to ensure that we have multiple sources of funding and the security of longer term debt.”

Talk to us
Daniel Jones Director, Debt Capital Markets



Daniel Jones
Head of Debt Capital Markets

+61 436 944 566
Daniel.Jones@fiig.com.au

FIIG Debt Capital Markets

FIIG has a proven track record of opening the Australian bond markets, having raised over $3.3bn of predominantly unrated bond funding across almost 100 issues.

The Debt Capital Markets team arranges long term, flexible AUD bond financing for rated and unrated Australian and New Zealand corporates. The DCM team also provides debt advisory services focused on optimising capital structures and diversifying funding options.

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