G8 Education, FIIG Debt Issue

Case Study - G8 Education

Issue Date

March 2014

Amount

$50 million

Maturity

3 March 2018

Term

4 years

Coupon

BBSW + 3.90%

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.

Client testimonial

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”

Talk to us
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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