MXT’s $315M Placement to Issue 157.5M New Units at $2 Each
Metrics Master Income Trust (ASX:MXT) has launched a fully underwritten wholesale placement to raise up to A$315 million, aiming to fund portfolio growth and diversification. The placement, priced at A$2.00 per unit, will see new units issued and trading commence in early June 2025.
- Up to 157.5 million new units issued at A$2.00 per unit
- Placement fully underwritten and within 15% ASX placement capacity
- Proceeds to fund diversified direct lending opportunities
- Cornerstone investors committed up to A$100 million
- New units rank equally with existing units and expected to trade from 6 June 2025
Capital Raise to Support Growth
Metrics Master Income Trust (MXT), a pioneer in Australia's listed fixed income and credit market, has announced a fully underwritten wholesale placement to raise up to A$315 million. The Trust will issue up to 157.5 million new fully paid ordinary units at A$2.00 each. This capital raise is designed to meet growing investor demand and to fund the Trust's continued expansion.
The placement is conducted within MXT's 15% placement capacity under ASX Listing Rule 7.1, meaning it does not require unitholder approval. The new units will rank equally with existing units, including in respect of entitlements and distributions, ensuring parity for all investors.
Strategic Investment Mandate
Proceeds from the placement will be invested by Metrics Credit Partners, the Trust's investment manager, in accordance with the Trust’s established investment mandate. The focus remains on originating new lending opportunities that enhance portfolio diversification and maintain prudent exposure limits to individual borrowers, thereby managing credit risk effectively.
Metrics highlights its strong track record of delivering stable monthly income distributions with low risk of capital loss, supported by a diversified portfolio currently comprising over 300 loans across various industries and credit qualities.
Market and Investor Support
The placement has attracted cornerstone support with commitments of up to A$100 million, underscoring investor confidence in MXT’s strategy and management. The Trust’s managing partner, Andrew Lockhart, emphasized the Trust’s consistent performance since its 2017 ASX listing and the importance of the capital raise in enabling further portfolio growth and diversification.
The timetable for the placement includes a trading halt and announcement on 29 May 2025, with the placement book opening and closing the same day. Settlement is scheduled for 4 June, with new units allotted on 5 June and expected to commence trading on the ASX on 6 June 2025.
Governance, Fees, and Risk Considerations
Metrics maintains a robust governance framework supported by a large team of investment professionals and comprehensive external oversight. The placement is managed by a syndicate of joint lead managers, including Morgans Financial, Taylor Collison, E&P Capital, Ord Minnett, and National Australia Bank, with fees structured to align with investor interests.
Investors are reminded of the inherent risks associated with investment in the Trust, including credit, liquidity, interest rate, and market risks. Detailed risk disclosures are provided in the Trust’s product disclosure statement, emphasizing that past performance is not indicative of future results.
Bottom Line?
As MXT prepares to deploy fresh capital, investors will watch closely to see how the Trust balances growth ambitions with its disciplined risk management approach.
Questions in the middle?
- How will the new capital specifically impact MXT’s portfolio composition and risk profile?
- What is the market’s reception to the placement once trading resumes on 6 June?
- Will MXT maintain its monthly distribution track record amid increased scale?
