FIIG - The Fixed Income Experts
WorkPac and FIIG - Warehouse Funding

Warehouse Funding: debt markets support securitisation and growth

WorkPac Group (“WorkPac”) is Australia’s largest privately owned workforce solutions business supporting primarily the mining, mining services, civil construction, medical & social care sectors.

Issuer Profile

WorkPac Group (“WorkPac”) is Australia’s largest privately owned workforce solutions business supporting primarily the mining, mining services, civil construction, medical & social care sectors.

The Issuer, the WorkPac Trade Receivables Trust No. 1 (The “Trust”) is a securitisation warehouse backed by a pool of trade receivables and WorkPac’s main source of funding. The receivables represent amounts owing to WorkPac with respect to labour supply and associated services provided to its highly diversified range of clients including blue-chip names such as BHP Billiton, Rio Tinto, Anglo America, Glencore and South32.

Issuer Need

After setting up the Trust with the existing senior financier and $30m Class B Notes in 2019, Workpac was seeking to refinance and reset the Trust. Understanding the benefits of having diversified sources of capital, WorkPac was seeking optimal flexibility and pricing as the Trust approached its maturity.

FIIG Solution

The FIIG Debt Capital Markets team’s expert analysis and understanding of WorkPac’s cash flow and working capital cycle identified the optimal capital structure. This resulted in the appropriate downsizing of the Class B Notes (after favourable terms from the senior financier increased the advance rate on the senior notes) helping to reduce the overall cost of debt while maintaining maximum flexibility.

Issuer Comment 

WorkPac has had mezzanine financing arrangements in place arranged by FIIG for many years now, which has been a key part of our funding strategy and has provided flexibility and capacity when needed.
The team from FIIG have proven to be competent, collaborative and solutions focused, which has prompted WorkPac to revisit the arrangement and ultimately raise a new replacement bond that will underpin WorkPacs funding arrangements for the coming years.

We value the strong relationship and look forward to working with FIIG moving forward.

Talk to us
Daniel Jones Director, Debt Capital Markets



Daniel Jones
Director, 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 $3.0bn of predominantly unrated bond funding across 80 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