FIIG - The Fixed Income Experts
Eric Insurance - FIIG Debt Issue

Case Study - Eric Insurance

Issue Date

August 2016

Amount

$22m

Maturity

4 August 2026

Term

10 years
(par call after 5)

Coupon

10%

About the Issuer

Established in 2000 and previously known as Avea Insurance, Eric is a privately owned underwriter of insurance products that are predominately related to the sale of new and used motor vehicles and motor vehicle finance. Eric sell a range of motor insurance-related products classed as either asset protection or personal protection products, and at the time of issuance was the 3rd-largest competitor in the market behind Allianz and Swann.

The issuer need

Eric operated a distribution network of independent motor vehicle dealerships and finance and insurance brokers to sell policies and was seeking to grow and diversify its distribution business model by acquiring a competitor’s Motor Vehicle Insurance business. This was in turn supported by its own existing internal sales team and established dealer network. Up until this point, Eric had benefitted from a lower cost base, however found limited opportunities to grow the network further through organic means. The increased business scale would enable Eric to penetrate large factory and franchise dealerships with a broader product offering and lower the cost per policy through improved operating leverage.

The FIIG solution

Eric was able to work closely with FIIG to issue a Tier 2 Capital Note into the capital markets. The terms and structure of the notes were supportive to Eric’s requirements and able to be included as regulatory capital with adhering to APRA’s requirements. The issue was viewed favourably by FIIG’s distribution network and was well oversubscribed.

Client testimonial

Eric CEO David Pemberton, who joined the company in 2009, was a senior manager at Swann Insurance between 1990 and 2002. “The acquisition fast-tracks our strategic ambitions, allowing us to have a more extensive network with car dealers and finance brokers”, he said. “We are very happy with the financing solution arranged by FIIG Securities enabling us to complete the acquisition”.

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.

WorkPac - FIIG Debt Capital Markets

$30m

July 2019
Class B Notes
Sole Lead Arranger

View the case study

SCT Logistics - FIIG Debt Capital Markets

$100m

June 2019
Unsecured Notes
Sole Lead Arranger

View the case study

PMP Limited - FIIG Debt Capital Markets

$55m

March 2019
Secured Amortising Notes
Sole Lead Arranger

View the case study

PMP Limited - FIIG Debt Capital Markets

$40m

November 2018
Subordinated Notes
Sole Lead Arranger

View the case study

Maurice Blackburn - FIIG Bond Issue

$40m

August 2018
Senior Subordinated Notes
Sole Lead Arranger

View the case study

Next-Generation-Clubs-Australia-Pty-Ltd

$60m

June 2018 & October 2018
Secured Notes
Sole Lead Arranger

View the case study

RSEA Safety - FIIG Debt Capital Markets

$32m

October 2016
Senior Secured Notes
Sole Lead Arranger

View the case study

Capitol Health - FIIG Debt Capital Markets

$50m

May 2016
Senior Unsecured Notes
Co-Manager

View the case study

Ansett Aviation Training - FIIG Debt Capital Markets

$40m

November 2015
Senior Unsecured Notes
Sole Lead Arranger

View the case study

PMP Limited - FIIG Debt Capital Markets

$40m

September 2015
Senior Unsecured Notes
Sole Lead Arranger

View the case study

Integrated Packaging - FIIG Debt Capital Markets

$40m

September 2015
Senior Unsecured Notes
Sole Lead Arranger

View the case study

SCT Logistics - FIIG Debt Capital Markets

$85m

June 2015
Senior Unsecured Notes
Sole Lead Arranger

View the case study

McPherson's - FIIG Debt Capital Markets

$60m

March 2015
Senior Unsecured Notes
Sole Lead Arranger

View the case study

Dicker Data - FIIG Debt Capital Markets

$40m

March 2015
Senior Unsecured Notes
Sole Lead Arranger

View the case study

Coffey - FIIG Debt Capital Markets

$40m

September 2014
Senior Unsecured Notes
Sole Lead Arranger

View the case study

G8 Education - FIIG Debt Capital Markets

$120m

March 2014 & August 2013
Senior Unsecured Notes
Sole Lead Arranger

View the case study

PMP Limited - FIIG Debt Capital Markets

$50m

October 2013
Senior Unsecured Notes
Sole Lead Arranger

View the case study

IMF Bentham - FIIG Dept Capital Markets

$72m

January 2020


View the case study

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

Copyright © 2019 FIIG Securities Limited | ABN 68 085 661 632 | AFSL No 224659 | Financial Services GuideSitemap | About us
FIIG provides general financial product advice only.  For a copy of our disclaimer please refer to fiig.com.au/disclaimer
* Based on FIIG’s high yield sample portfolio. Click here to view. Subject to change and before fees. Please see our FSG for any applicable fees.