FIIG - The Fixed Income Experts
RSEA Safety Finance Bond Issue

Case Study - RSEA Finance

Issue Date

October 2016

Amount

$32 million

Maturity

October 2021

Term

5 years, callable after 1 year

Coupon

7.75% p.a. paid quarterly in arrear

About the Issuer

RSEA is a leading specialist retailer and B2B distributor of workwear, personal protective equipment and a hirer of road safety equipment. Since being established in 1993, RSEA has expanded its operations across Australia and New Zealand, where it now operates in all mainland states as well as the Northern Territory.

RSEA is a business that, across both its Safety and Hire divisions, is underpinned by legislative requirements stipulating minimum standards of occupational health & safety. This makes its products a compulsory and non-discretionary spend across all business sectors.

The issuer need

Following a takeover by private equity firm CHAMP Ventures, RSEA was looking to continue its strategy to grow the store footprint, develop own-branded products, build the B2B channel and invest in high quality safety hire equipment. RSEA was looking for a financier to partner with to refinance its existing term debt, fund future capital expenditure and provide additional capital for new opportunities going forward.

The FIIG solution

FIIG was able to raise a $32m Senior Secured Note for RSEA, allowing a full refinance of the existing facility. This allowed RSEA to continue its expansion strategy, opening new stores and broadening its B2B channel. The flexible call nature of the Note also allows RSEA to redeem the debt at a convenient date should further growth/a sale of the business occur within the first 2 years of the Issue.

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