Accounting software company MYOB announced yesterday it had completed an offer of subordinated notes on the Australian Stock Exchange to raise $155 million.
MYOB said strong demand had allowed it to raise its target from the initial $125 million offer. The notes guaranteed a minimum interest rate of 10 percent for the first year. MYOB issued the 1.55 million notes valued at $100 each yesterday.
“The net proceeds will be used to partly repay senior debt facilities that were used to finance the acquisition of MYOB and make a return of capital to the current owner of the MYOB Group,” Bain Capital, the company said in a press release. Bain Capital “may reinvest those proceeds in future product development or for acquisitions by MYOB, return it to its ultimate owners, or use the proceeds itself at its discretion.”
“We are very pleased with the level of investor support shown for the offer during this exciting stage of MYOB’s development. The strong demand for the Notes, which was capped at an Offer size of $155 million, reflects the market’s confidence in MYOB’s ability to leverage strategic opportunities and reinforce our position as a market leader in management solutions to SMEs and accountants in Australia and New Zealand,” said MYOB CEO Tim Reed in the release.