ICAM ACIF Lucky Bay 2 Trust

Issue of Redeemable Preference Units, $10 million issue

The ICAM ACIF Lucky Bay 2 Trust is developing a specialist multi-commodity import and export facility in Wallaroo, South Australia. The development is the natural extension to the Lucky Bay Port on the Eyre Peninsula.

The investment in transhipping and logistics infrastructure includes the Wallaroo Port Facility that is strategically located in the Yorke Peninsula grain catchment zone, port storage silos with capacity for 32,000 tonnes of grain and upcountry bunker storage with capacity for 260,000 tonnes of grain.

The total debt funding requirement for the Project is $30 million, with Redeemable Preference Units representing $10 million of this balance. Senior debt has been secured for the balance from an Australian based institutional fund.

There is an opportunity for investors to participate in the issue of Redeemable Preference Units.

Investment highlights

  • Coupon 14% p.a., payable quarterly in arrears
  • Second ranking subordinated secured obligations of the Trust
  • Maturity date 48 months following the first close date, subject to earlier redemption by the Trustee
  • Security is a second ranking mortgage over freehold land and fixtures at the Wallaroo Port and second ranking mortgage over land at the upcountry bunker site
  • The Trust is targeting an LVR of 45% to a maximum of 55% on a fully constructed basis.