MA Income’s $50M Placement Signals Strategic Push Amid Credit Market Uncertainty
MA Income Credit Trust (ASX – MA1) has launched a fully underwritten wholesale placement to raise nearly $50 million, aiming to bolster its credit investment portfolio. The placement will issue over 24.8 million new units at $2.00 each without requiring securityholder approval.
- Wholesale placement to raise approximately A$49.7 million
- Up to 24,850,253 new units issued at $2.00 per unit
- Placement fully underwritten and conducted under existing placement capacity
- Proceeds targeted at core credit segments including private credit and asset-backed lending
- Placement timetable set for late June to early July 2025
MA Income Credit Trust Launches Capital Raise
MA Income Credit Trust (ASX, MA1) has announced a significant capital raising initiative through a fully underwritten wholesale placement. The trust plans to issue up to 24,850,253 new units at a fixed price of $2.00 per unit, aiming to raise approximately $49.7 million. This move is designed to strengthen MA1's investment capacity in its core credit markets.
Placement Details and Execution
The placement is being conducted under MA1’s existing placement capacity pursuant to ASX Listing Rule 7.1, meaning no additional securityholder approval is required. The new units will rank equally with existing fully paid ordinary units, ensuring parity for new investors. The placement is fully underwritten, providing certainty of capital raising, and is managed by a consortium of financial advisors and brokers including Moelis Australia Limited, Shaw Partners Pty Limited, and Canaccord Genuity (Australia) Limited.
Investment Strategy and Use of Proceeds
Proceeds from the placement will be invested in line with MA1’s established credit investment strategy. This includes direct and indirect exposure to private credit, asset-backed lending, and direct corporate lending. These segments align with MA Financial’s flagship credit strategies, which focus on curated credit opportunities designed to deliver stable income and capital preservation. The investment management will be overseen by MA Investment Management Ltd, ensuring continuity and expertise in portfolio execution.
Timetable and Market Impact
The placement timetable includes a trading halt announcement on June 23, 2025, with the placement opening the same day and closing by 4, 00 pm. Settlement of the new units is expected on July 1, 2025, with quotation and trading on the ASX commencing on July 2, 2025. Investors and market participants will be watching closely to gauge market reception and the impact on MA1’s share price and liquidity.
Regulatory and Disclosure Considerations
The announcement includes standard disclaimers regarding forward-looking statements and investment risks. It emphasizes that the placement is not a public offer and is only available to wholesale investors. The trust also highlights the importance of investors reviewing the accompanying investor presentation released concurrently, which details the risks and investment considerations associated with MA1.
Bottom Line?
This capital raise positions MA Income Credit Trust to deepen its credit market footprint, but investors will be keen to see how the new capital translates into performance amid evolving credit conditions.
Questions in the middle?
- How will the additional capital influence MA1’s portfolio risk and return profile?
- What are the anticipated impacts on unit price and distribution yields post-placement?
- How does MA1 plan to navigate potential credit market volatility with this expanded capital base?
