For Accredited Investors Only
SDAX partnered with a leading global investment bank to launch an exclusive investment opportunity on our platform. This opportunity will only be available to Accredited Investors and other specified investors on the SDAX platform. This investment will be a participation in USD 2.8 million promissory note currently held by a leading global investment bank. Members have a chance to “co-invest” in this trade with the investment bank.
About the Issuer and Loan Purpose
The Obligor is a 4G mobile telecommunications service provider in South East Asian country. It is effectively a subsidiary of a sovereign wealth fund. The Obligor is the 4th largest telecom player in terms of revenue share in its country, ~13% market share by revenue and over 6.7mn active subscribers by Q1 2020. The company’s revenue grew at ~11% YoY in 2019 to over USD 745mn, a CAGR of ~31% from 2012 to 2019. EBITDA in 2019 was USD 142mn, an increase of more than 200% YoY. The promissory notes represent accounts receivables payable by the Obligor to its vendor arising from an equipment and services supply contract for telecom equipment with deferred payment schedule.
- Short-term promissory note at an attractive coupon rate comparatively to the tradeable bonds
- Rare co-participation investment opportunity with a global investment bank and only exclusively available via SDAX.
- The investment bank will hold 20% of the promissory notes of this tranche (i.e. skin in the game) while SDAX investors will invest the balance. SDAX has also invested 10% in this deal.
- Through the co-investment, investors can benefit from the due diligence undertaken by the investment bank and that the investment bank will facilitate the repayments
- The promissory notes reflect the Obligor’s commitments to pay its vendor for the purchase of telecom equipment
- The Obligor is backed by a strong sponsor with over USD 650mn invested.
What would you gain or lose in different scenarios?
- Best Case Scenario
- Investor gets to make a return based on the agreed interest rate offered in addition to the investment principle committed to participate in the Term Loan Facility.
- Worst Case Scenario
- In the event of default, recovery from the outstanding loan amount will be by way of liquidating assets that are being pledged as security for the Term Loan Facility.
Investor Proﬁle for this issuance should be BALANCE.
The nature of the investment is BALANCE.
Risk & Reward involved with the investment BALANCE.