About the Issuer
Dicker Data (ASX:DDR) is a leading Australian wholesale
distributor of computer hardware and related products
which has operated in Australia since 1978. In April 2014
Dicker Data, the 4th largest IT distributor in Australia
acquired Express Data, the 3rd largest for $65m (5x EBIT
multiple). The acquisition made Dicker Data the 2nd
largest player in the domestic market behind the global
group Synnex, with an estimated 22% market share and
gave its access to the NZ market (8-9% market share).
The issuer need
Following the acquisition of Express Data there was a
requirement to re-set Dicker Data’s debt funding structure
to more adequately address the growth funding needs of
the business in the medium to longer term. Dicker Data
sought the security of longer term financing to effectively
mitigate the risk associated with refinancing its existing
facilities.
The FIIG solution
By issuing a Senior Unsecured $40m bond into the capital
markets, Dicker Data was able to diversify its funding
sources and structure a more suitable debt maturity
profile. The size of the bond issue enabled Dicker Data to
further utilise its existing facilities to fund growth its
business. It also gained access to a new investor base with
almost 450 investors purchasing the bond in the primary
issuance.
Client testimonial
Chairman and CEO David Becker said, “This bond issue is
an important initiative for our company which reflects our
determination to ensure that we have multiple sources of
funding and the security of longer term debt.”