FIIG - The Fixed Income Experts

News and Education

G8 Education hits the mark

by Gavin Madson | Aug 26, 2013

On 17 July 2013 G8 announced to the market that its underlying EBIT was expected to exceed the average EBIT forecast in the four published brokerage reports. This announcement was made in the lead up to the company’s recent senior unsecured note offering it undertook through FIIG Securities.

The announcement was based on the company’s review of its unaudited (at the time of announcement) results and we note the announcement of its (audited) half year results last week confirmed the company’s expectation. Underlying EBIT for the half year was $17.6m, which compared favourably with the average forecast EBIT of the four brokers of $17.1m.

Contributing to G8’s performance for the year was the contribution from the 33 centres acquired during the 12 month period (with seven underperforming centres divested during the year).

G8’s recently issued 6 year fixed rate bond has traded up to approximately $101.70 which yields 7.29% to maturity.  This issue is available to wholesale investors only and is now available in $10,000 parcels*.

All prices and yields are a guide only and subject to market availability. FIIG does not make a market in these securities.

*New investors will need to invest a minimum $50,000 which could be made up of five $10,000 bonds, or split in other configurations, for example one $30,000 bond and one $20,000 bond as long as the minimum $10,000 per investment is satisfied.