MA Financial raises $55m in high-yield bond market, led by Ord Minnett

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The deal might help small-cap managers eyeing the stock figure out its true cost of capital.

Andrew Pridham, group vice chairman of MA Financial Group.The boutique advisory and asset management firm, which has just over $9 billion in assets under management, raised $55 million via a four-year floating-rate bond deal that was marketed to fixed-income funds and high-net-worth investors last week by sole lead manager Ord Minnett. The firm has the option to upsize the issue by $15 million via an exchange offer to existing bondholders.

MA is expected to use the proceeds to refinance an existing $30 million corporate bond, due in May, and for general corporate purposes to support ongoing growth initiatives. Its other two bonds are set to mature in September this year and September 2027. , which has an A credit rating, raised $500 million of 10-year debt, paying a margin of 1.7 percentage points over the bank rate, or 6.19 per cent., which has a BBB+ rating, attracted more than $2 billion of orders for its $850 million 10-year bond issue, which priced at 1.47 percentage points over the bank rate, or 5.9 per cent.

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