Metrics Master Income Trust · ASX:MXT
Metrics Master Income Trust — MCP Master Income Trust — Investor Presentation (February 2018)
24 slides from Metrics Master Income Trust's investor presentation, Feb 26, 2018
Slide 1: MCP Master Income Trust Investor Presentation – 26 February 2018
For personal use only MCP MASTER INCOME TRUST (ASX: MXT) INVESTOR PRESENTATION – 26 FEBRUARY 2018 Lead Arranger Financial Adviser and Joint Lead Manager Joint Lead Managers AFS Licence 241010 AFS Licence 238814 AFS Licence 235410 AFS Licence 237121 AFS Licence 238383 Distribution Partner Co-Managers
Slide 2: Disclaimer
DISCLAIMER The following notice and disclaimer applies to this investor presentation (Presentation or Document) and you are therefore advised to read this carefully before reading or making any other use of this Presentation or any For personal use only information contained in this Presentation. By
Slide 3: Disclaimer
DISCLAIMER Fi na nc i a l d a t a For personal use only All dollar values are in Australian dollars (A$ or AUD) unless otherwise stated. Prospective investors should also be aware that certain financial data included in this Presentation is "non-IFRS financial information" under Regulatory Guide 230
Slide 4: Contents
CONTENTS For personal use only 1. Executive Summary 2. About metrics credit partners 3. About mxt 4. Offer Structure Appendix I: Key risks COMMERCIAL-IN-CONFIDENCE
Slide 5: Executive Summary
For personal use only 01 EXECUTIVE SUMMARY COMMERCIAL-IN-CONFIDENCE
Slide 6: Overview of Capital Raising
OVERVIEW OF CAPITAL RAISING For personal use only – MCP Master Income Trust (ASX:MXT) (“MXT” or “Trust”) is an investment trust listed on the Australian Securities Exchange ABOUT (‘ASX’) that provides investors with direct exposure to the Australian corporate loan market THE FUND – MXT invests in an
Slide 7: A Unique Opportunity to Access Monthly Cash Income from Direct Lending
A UNIQUE OPPORTUNITY TO ACCESS MONTHLY CASH INCOME FROM DIRECT LENDING TO AUSTRALIAN CORPORATES For personal use only 1 An experienced and active management team with a proven track record – MCP is a debt-specialist fund manager with approximately $2.7 billion assets under management – ~$3.8 billion
Slide 8: About Metrics Credit Partners
For personal use only 02 ABOUT METRICS CREDIT PARTNERS COMMERCIAL-IN-CONFIDENCE
Slide 9: Experienced Investment Team with Proven Track Record
EXPERIENCED INVESTMENT TEAM WITH PROVEN TRACK RECORD For personal use only OVERVIEW INVESTMENT TEAM – Over 31 years experience – Australian debt-specialist fund – Considerable experience across loan origination, structuring manager ANDREW and portfolio risk management LOCKHART – Investment team have
Slide 10: MCP Originates and Lends Directly to Australian Corporates Alongside Banks
MCP ORIGINATES AND LENDS DIRECTLY TO AUSTRALIAN CORPORATES ALONGSIDE BANKS For personal use only FIXED INCOME MARKETS BY CREDIT QUALITY Risk / Return MCP is an active participant in Australia’s corporate loan market and has Traditional Fixed Bank lending / balance sheets Return Finance companies, no
Slide 11: MCP Has Invested More Than $3.8 Billion in ~100 Loan Transactions
MCP HAS INVESTED MORE THAN $3.8 BILLION IN ~100 LOAN TRANSACTIONS SINCE JUNE 2013 For personal use only ACROSS INDUSTRIES ACROSS THE CREDIT SPECTRUM ACROSS DEBT PRODUCTS – Aquasure – Aspire Schools – AWX – Asaleo Care – ConnectEast – Bis Industries – Charter Hall – Deicorp – Contract Resources – CIM
Slide 12: About MXT
For personal use only 03 ABOUT MXT COMMERCIAL-IN-CONFIDENCE
Slide 13: MXT Has Consistently Traded at a Premium to NAV Since IPO
MXT HAS CONSISTENTLY TRADED AT A PREMIUM TO NAV SINCE ITS IPO AND LISTING ON ASX IN OCTOBER 20171 For personal use only KEY TRADING STATISTICS TRADING PERFORMANCE SINCE LISTING ON ASX 1 $2.20 MXT unit price NAV IPO price per Unit $2.00 $2.15 Highest traded price since listing on ASX1 $2.15 Lowest tr
Slide 14: MXT Has Achieved Targets Disclosed at IPO
MXT HAS ACHIEVED TARGETS DISCLOSED AT IPO CHARACTERISTIC DISCLOSED TARGET OUTCOME / CURRENT POSITION For personal use only IPO OFFER SIZE At least $100 million $516 million RBA cash rate + 3.25% 4.75% (annualised distributions from ASX listing to TARGET RETURN 1 (4.75% as at the date of the IPO PDS)
Slide 15: Corporate Loans Provide Stable Monthly Cash Yield with Low Capital Volatility
CORPORATE LOANS PROVIDE STABLE MONTHLY CASH YIELD WITH LOW CAPITAL VOLATILITY For personal use only CORPORATE LOAN INTEREST RATES1,2 MAJOR BANKS’ HISTORICAL NET WRITE-OFFS3,4 9% 9% 1.0% 8% 8% Peaking at approximately 0.67% in March 2010 7% 7% 0.5% 6% 6% 5% 5% 0.0% 4% 4% Mar-09 Mar-10 Mar-11 3% 3% 2%
Slide 16: Offer Structure
For personal use only 04 OFFER STRUCTURE COMMERCIAL-IN-CONFIDENCE 15
Slide 17: Offer Structure Overview
OFFER STRUCTURE OVERVIEW For personal use only – MXT has announced a non-renounceable 1 for 1.7 entitlement offer to raise up to approximately $303.6 million (“Entitlement Offer”) – The Offer includes an oversubscription facility which will allow eligible unitholders to subscribe for units in excess
Slide 18: Offer Structure Overview (Continued)
OFFER STRUCTURE OVERVIEW (CONTINUED) – Offer announced and PDS lodged with ASX and ASIC 26 February 2018 For personal use only – Units trade on an ex-entitlement basis 28 February 2018 – Record date to participate in the Entitlement Offer (7:00pm AET) 1 March 2018 – Offer opens (9:00am AET) 5 March
Slide 19: Offer Participation
OFFER PARTICIPATION For personal use only WHO CAN PARTICIPATE ELIGIBLE UNITHOLDERS NEW INVESTORS – Unitholders who are eligible to participate in the Entitlement – Can participate in the Shortfall Offer Offer (“Eligible Unitholders”) can subscribe for 1 new unit for – Should contact their broker or
Slide 20: Appendix I: Key Risks
For personal use only APPENDIX: I KEY RISKS COMMERCIAL-IN-CONFIDENCE 19
Slide 21: Key Risks
KEY RISKS An investment in the Trust carries risk, including those specific to the Trust, those broader risks which affect the Trust and those more general risks associated with investing in the fixed income market. Many of these risks are For personal use only outside the control of the Responsible
Slide 22: Key Risks
KEY RISKS Credit cycle risk For personal use only Metrics Credit Partners operates in an industry which is influenced by both domestic and global credit cycles. Credit cycles expand and contract naturally over time in line with macroeconomic variables and are influenced by governments’ fiscal and mo
Slide 23: Key Risks
KEY RISKS Market and economic risk For personal use only Certain events may have a negative effect on the price of all types of investments within a particular market in which the MCP Wholesale Investments Trust or the Wholesale Funds hold investments. These events may include (but are not limited t
Slide 24: Key Risks
KEY RISKS Regulatory approvals For personal use only All regulatory approvals for the continued operation of the Trust, including licenses or exemptions from licensing for the Manager have been obtained and the Responsible Entity and Manager are not aware of any circumstances which might give rise t
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