Metrics makes high yield pitch for new $300m listed trust

Credit fund manager Metrics Credit Partners is set to launch a $300 million equity raising for a new ASX-listed trust.

Street Talk can reveal Sydney-based Metrics has tapped five brokers to oversee its second listed vehicle, which would be called the MCP Income Opportunities Trust.

Metrics, advised by Grant Samuel, is expected to lodge an offer document with the corporate regulator this week to map out its pitch and kickstart the fundraising.

The new trust is designed to give investors a 7 per cent a year cash income with distributions to be paid quarterly and targeting an 8 per cent to 10 per cent a year total return for investors.

It intends to make that return writing loans as part of the wider Metrics portfolio, and also look to boost returns by taking options, warrants or other minority equity interests.

The new listed trust would invest in three of Metrics’ underlying wholesale funds; real estate debt, secured private debt and the MCP Credit Trust. It rounds out Metrics’ wider stable of funds – and means it will have a full product suite on offer from high investment grade corporate debt through to deep sub-investment grade credit with an attached equity interest.

Metrics and its brokers are expected to target high net worth investors – some of who will be rethinking where to invest for yield in light of potential changes to the country’s franking system.

Taylor Collison has been tapped to lead the raising, while Ord Minnett, Wilsons, Bell Potter and Shaw and Partners are also involved. Investors are expected to be told the $300 million target is a hard limit, with no ability to increase the offer size.

It is understood Metrics and its advisers have already lined up some investors to take stock in the new trust. It’s expected to launch with $200 million already secured from cornerstone investors, a priority offer for investors in Metrics’ already listed MCP Master Income Trust and the rest available through the brokers and general offers.

If successful, it’ll take Metrics’ assets under management to $4 billion, all of which is invested in direct loans to Australian corporates. Metrics started with a $75 million mandate from one investor in June 2013.

Written by Sarah Thompson and Anthony Macdonald

Originally written for the Australian Financial Review

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