About the Issuer
McPherson’s is an ASX-listed consumer products company
which markets and distributes leading Australian
housewares, personal care, home appliance and
household consumable products. The company owns a
diversified portfolio of well-known brands including
Manicare, Lady Jayne, Dr LeWinn’s and also manages some
significant brands for overseas agency partners such as
Procter & Gamble (Hugo Boss, Dolce & Gabbana & Gucci
fragrances) and Trilogy
The issuer need
In the years leading up to the Issue, McPherson’s had
undertaken a series of acquisitions using debt funding
provided by short-term revolving bank facilities.
McPherson’s was seeking a financier that would work with
the company to elongate its debt profile, diversify its
funding sources away from the existing bank facilities and
look to reduce the overall reliance on bank debt over the
medium term.
The FIIG solution
FIIG was able to work closely with McPherson’s to issue the
bond to the FIIG investor network. The terms of the bond
allowed McPherson’s the flexibility to both diversify its
funding base and lengthen the duration of its debt
funding.
The dual-tranche Fixed and Floating Rate structure
optimised the structuring flexibility in both tenor and
interest rate hedging protection for McPherson’s, fitting
within its broader capital and risk management objectives
whilst also providing additional diversity of bond options
for investors.
Client testimonial
McPherson’s Managing Director Paul Maguire said “We are
pleased with the terms of the offering given the various
benefits derived for McPherson’s, including greater
financial flexibility, extended tenure, diversification and a
broadening of our capital base”.