Metrics Master Income Trust (MXT) has announced a non-underwritten Unit Purchase Plan aiming to raise approximately A$120 million by offering new units to eligible unitholders in Australia and New Zealand.
- Non-underwritten Unit Purchase Plan to raise up to A$120 million
- Eligible unitholders can acquire up to A$30,000 worth of new units at A$2.00 each
- New units rank equally with existing units including distribution entitlements
- Plan opens 4 September and closes 26 September 2025
- Proceeds to support continued lending and portfolio diversification
Unit Purchase Plan Details
Metrics Master Income Trust (ASX, MXT), managed by Metrics Credit Partners and overseen by The Trust Company (RE Services) Limited, has launched a significant capital raising initiative through a Unit Purchase Plan (UPP). The plan offers existing eligible unitholders in Australia and New Zealand the opportunity to purchase new fully paid units at a fixed price of A$2.00 per unit, with a maximum investment cap of A$30,000 per participant.
The Trust aims to issue up to 60 million new units, targeting gross proceeds of approximately A$120 million. These new units will rank equally with existing units, including rights to distributions, ensuring no dilution of income entitlements for current investors.
Strategic Rationale and Market Context
According to Andrew Lockhart, Group CEO and Managing Partner of Metrics, the capital raised will enable the Trust to continue providing non-bank financing solutions to Australian companies. This move comes amid strong borrower demand across various industries, reflecting the Trust’s robust track record and ongoing commitment to portfolio diversification.
The funds raised will be invested in line with MXT’s established investment mandate, focusing on direct lending opportunities that align with the Trust’s target returns and risk management framework. This approach underscores Metrics’ strategy to maintain a diversified and resilient portfolio in the evolving credit market.
Participation and Timeline
The UPP is open exclusively to unitholders registered by 7, 00 pm (Sydney time) on 28 August 2025, with the offer period commencing on 4 September and closing on 26 September 2025. The Responsible Entity has noted that the plan is not underwritten, meaning the final amount raised will depend on investor participation. In the event of oversubscription, a scale-back mechanism will be applied, with any excess funds refunded without interest.
Results of the UPP, including any scale-back details, are expected to be announced on 30 September 2025, with new units issued on 2 October and commencing trading on 3 October 2025.
Implications for Investors
For existing unitholders, the UPP presents an opportunity to increase their exposure to MXT at a fixed price, potentially enhancing income streams given the units’ equal ranking. The capital raise also signals confidence from the Trust’s management in the ongoing demand for private credit solutions and the strength of its investment pipeline.
However, investors should consider the non-underwritten nature of the plan and the possibility of scale-back, which could affect allocation. As always, potential participants are advised to review the detailed offer booklet and consider their individual financial circumstances before investing.
Bottom Line?
The success of this capital raise will be a key indicator of investor confidence in MXT’s growth strategy and the broader private credit market.
Questions in the middle?
- Will investor demand meet the full A$120 million target or trigger a scale-back?
- How will the additional capital influence MXT’s portfolio composition and risk profile?
- What impact might this raise have on MXT’s distribution guidance and future returns?