Gryphon Capital Income Trust Prices $90.9M Placement at $2.00 per Unit

Placement Details and Strategic Intent

Gryphon Capital Income Trust (GCI), managed by Gryphon Capital Investments; a Barings company; has announced a significant capital raise through a wholesale placement of 45,450,075 new units at $2.00 each, amounting to approximately $90.9 million. This placement is conducted under the Trust’s existing placement capacity as per ASX Listing Rule 7.1, meaning it does not require unitholder approval. The new units will rank equally with existing units, including entitlement to upcoming distributions, specifically participating in the March 2026 distribution.

The funds raised are earmarked to support incremental portfolio management consistent with the Trust’s established investment strategy. While the announcement does not specify exact deployment, the capital injection is expected to enhance portfolio diversification and scale, potentially improving cost efficiencies and liquidity for investors.

Market Position and Manager Profile

Gryphon Capital Investments manages over A$5.2 billion in assets, operating within the broader Barings platform, which oversees more than US$481 billion globally. Gryphon’s expertise lies in fixed income markets, including Australian and international securitisation and asset-backed securities. The Trust has a history of meeting or exceeding its investment objectives since its IPO in 2018, including delivering sustainable monthly income and capital preservation across economic cycles.

The placement is led exclusively by National Australia Bank Limited, acting as sole arranger and lead manager. Notably, the placement is not underwritten, which introduces some execution risk but also reflects confidence in market demand for the Trust’s units.

Pricing and Investor Implications

The offer price of $2.00 per unit represents a 3.66% discount to the Trust’s 30-day volume-weighted average price (VWAP) of $2.0759 as of 20 February 2026. This discount is a common feature in wholesale placements to incentivise participation while balancing dilution concerns for existing unitholders.

Investors should note that while the Trust targets a return of the Reserve Bank of Australia (RBA) cash rate plus 3.5% per annum net of fees, distributions are at the discretion of the Responsible Entity and are not guaranteed. The Trust’s portfolio currently holds a diversified fixed income asset base with a current yield around 7.39% and a market capitalisation exceeding A$1.2 billion.

Risks and Regulatory Considerations

The announcement includes comprehensive risk disclosures, highlighting market, credit, liquidity, and operational risks inherent in fixed income investments. The Trust also cautions investors about the absence of capital guarantees and the potential for unit price volatility. The placement is offered exclusively to wholesale clients under the Corporations Act, with strict restrictions on distribution outside Australia and New Zealand.

Given the placement is not underwritten, the Trust’s ability to fully raise the targeted amount depends on investor appetite. The Responsible Entity reserves the right to amend the timetable or close the offer early, reflecting prudent management of market conditions.