About the Issuer
G8 Education Ltd (G8) is Australia’s largest for-profit
provider of child care services. It was formed in March 2010
through the merger of Early Learning Services and Payce
Childcare Pty Ltd at which time it operated 88 child care
centres. G8 operates a multi-brand strategy which allows
centres to operate largely autonomously, whilst overlaying
the group’s corporate disciplines across the portfolio.
The issuer need
G8 Education experienced strong growth over the next 4
years acquiring over 200 additional childcare centres
funded via a combination of bank debt, equity and a $70m
unsecured Note arranged by FIIG. Having seen value in the
previous bond issuance, G8 approached FIIG to assist in
arranging another bond issue to support continued
growth in the business.
The FIIG solution
The issue provided G8 with additional capital to continue
on their acquisition strategy without additional bank
constraints or further dilution of shareholder value. By
diversifying its capital structure and issuing a 4 year FRN
(as opposed to the 6 year fixed rate note previously issued)
G8 maximised investor participation while minimising
refinance and interest rate risk.
Managing Director Chris Scott said “The strong demand for
the Notes from investors is reflective of the market’s
support for G8 Education’s strategy and business model.
This offering will enable us to continue our diligent
approach to capital management and fund $50million in
further acquisitions which meet our metrics.”