Axsesstoday Ltd (ASX code: AXLHA) is a company listed on the ASX under the code AXL in 2016. It has provided funding to small and medium organisations through leasing arrangements and mortgages since commencing operations in 2012. It has a market capitalisation of around $150 million and its debt is unrated by credit agencies.
Axsesstoday has now joined the small but growing list of “simple bond” issuers as its floating-rate bonds began trading on the ASX this week. The opening trade was at the high for the day of $100.20 and the bonds closed at $100.01, effectively at the issue price and face value. The bonds have a maturity date of 20 July 2023 and an issue margin of 4.90% above 3 month BBSW for an initial yield of around 6.90%.
The funds raised will be used to support future loan growth and reduce existing borrowings. Axsesstoday said the new bonds would reduce its overall funding costs while lengthening its debt maturity profile.
Since the issue was announced at the end of June, margins on ASX-listed notes have remained fairly stable on average. However, averages can hide volatile movements which occur within the sample set, as readers will see from the diagram below.