LGB arranges its first underwritten medium term note (MTN) issue
SRT, the global provider of maritime surveillance and vessel tracking systems, required certainty of funding to progress with a large systems project. SRT are a regular issuer of loan notes through its existing £10 million MTN Programme. The Group was awarded a large contract with the Philippines Government to supply a fully integrated Vessel Management System. Due to the timing difference between the expected payment of invoices and SRT’s expenditure requirement, the Group required certainty of funds so that work on the project could begin.
LGB understood the requirement to have certainty of funding and swiftly engaged with investors. Investors were identified who could underwrite the full issue value. This provided SRT with the capital requirement upfront so work on the project could begin. LGB is now in the process of selling down the issue to other investors. The investors who underwrote the issue received an underwriting fee on top of the 8.0% interest p.a.