MCP successful in IPO
National Australia Bank (NAB)-backed Metric Credit Partners (MCP) is claiming strong investor interest in listed fixed income products following the successful initial public offering (IPO) of the MCP Master Income Trust (ASX: MXT).
The public offering officially closed at approximately $515 million, with the company saying this made it one of the biggest fund IPOs in Australia to date and one which strongly resonated with self-managed superannuation fund (SMSF) and self-directed investors.
Unitholders in MXT, which is scheduled to list on the Australian Securities Exchange (ASX) on 9 October, will receive monthly cash income with a target yield of Reserve Bank of Australia (RBA) cash rate +3.25 per cent per annum (currently 4.75 per cent) net of all fees and costs, with low risk of capital loss
MXT, the first listed investment trust from MCP is intended to offer investors direct, diversified exposure to Australia’s corporate loan market, with exposure to a portfolio of more than 50 corporate loans, diversified by borrower, industry, and credit quality.
Commenting on the launch, MCP managing partner, Andrew Lockhart said investing in corporate loans had traditionally been a market dominated by regulated banks, making it difficult for non-bank investors to access.
“We feel it was the unique opportunity offered by MXT that resonated most with SMSF and self-directed investors,” he said. “The size and scale of the confirmed demand ensure we will have a highly diversified portfolio of corporate loans, and the benefits will flow back to the unitholders as the trusts’ operating costs will be at the lower end of the scale.”
MCP is majority-owned by the investment team of Justin Hynes, Andrew Lockhart, Graham McNamara and Andrew Tremain (65 per cent), and 35 per cent owned by NAB.
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