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MinterEllison has advised ASX-listed investment trust, MCP Master Income Trust (ASX:MXT), on its proposed $381 million capital raising.
MXT announced the capital raising, which involved a novel entitlement offer and back-end retail placement structure, today. Proceeds from the capital raising will be invested in wholesale funds, managed by Metrics Credit Partners (MCP), for new lending opportunities. Established in 2011, MCP continues to see a strong pipeline of lending opportunities across a variety of borrowers and industries.
The Trust Company (RE Services) Limited is the responsible entity of MXT, and MCP is the investment manager of MXT.
MXT invests in units in the MCP wholesale investments trust, cash at bank and other assets in accordance with its stated investment strategy, being the provision of monthly cash income, low risk of capital loss and portfolio diversification by actively managing diversified loan portfolios and participating in Australia’s bank-dominated corporate loan market.
The capital raising follows MXT's recently completed IPO (which MinterEllison advised on) and shows the continued investor appetite for this unique investment opportunity. In an environment where investors are struggling to find stable and reliable income sources, MXT provides long term surety of income for investors.
MXT's IPO, a first of its kind for the ASX, has generated a large amount of interest from investors and other product issuers who have noted the strong success of MXT.
Notably, the IPO was the first time investors were able to gain access, through investing in MXT, to what would otherwise have been an illiquid strategy available only to institutional investors.
"We are pleased once again to see MCP providing a compelling source of income for investors in a low yield environment," said Nathan Cahill, MinterEllison's lead Partner.
MinterEllison Partners Nathan Cahill and Daniel Scotti led the transaction. They were supported by Nicole Sloggett (Senior Associate), Yoni Garson (Associate), Joshua Holmes (Lawyer), Emanuel Penklis (Lawyer) and Edward Morrow (Graduate).
Completion of the capital raising is expected to be on 18 April 2018.
I am an experienced corporate lawyer, focused on capital markets and mergers and acquisitions (M&A). My expertise is in initial public offerings (including dual tracks and dual listings), placements, rights and entitlement offers, secondary offers, and convertible and corporate bond offers. My M&A experience covers private treaty deals and public transactions such as schemes and takeovers. I also advise on compliance, reporting and disclosure under the Corporations Act 2001 (Cth) and Australian Securities Exchange (ASX) Listing Rules.
Nathan Cahill is a leading private equity and hedge fund formation and financial services industry lawyer with wide experience in local and offshore hedge, private equity and other alternative investment funds.
© 2018 MinterEllison
