Dicker Data has landed a five-year floating rate unsecured corporate bond offering to raise $40 million.
The bond will increase the tenure of Dicker’s debt maturity profile and diversify its debt funding sources.
The net proceeds of the offering will be used to reduce existing bank debt, increase its working capital and for general corporate purposes.
The Lead Arranger for the transaction is FIIG Securities.
Dicker Data chairman and CEO, David Dicker, said the issue reflected its active approach to capital management and it was a significant step towards entering the corporate bond market.
“The bond issue is an important initiative for our company which reflects our determination to ensure that we have multiple sources of funding and the security of longer term debt,” Dicker said in a statement on the ASX.
“We look forward to establishing relationships through the bond issue with many new investors who will have a stake in the ongoing success of our company.”
FIIG Securities CEO, Mark Paton, said the offering was another positive development for expanding the Australian bond market for mid-sized companies.
Dicker Data recently revealed its FY15 first-half results indicating a revenue increase of 121 per cent to $498 million and net profit after tax decrease of 57 per cent to $1.5 million that was due to the costs associated with its acquisition of Express Data.