MCP Master Income Trust (ASX: MXT) withdrawal of offer

Metrics Credit Partners (Metrics) has withdrawn its current capital raising for the Master Income Trust (ASX:MXT) due to the current extreme market volatility.

Metrics Credit Partners (Metrics) has withdrawn its current capital raising for the Master Income Trust (ASX:MXT) due to the current extreme market volatility.

While the Offer was well supported by existing and new investors, the decision was based on current market conditions and investors’ best interests.

The Trust’s units have generally traded with little correlation to public domestic and international equity and bond markets, however Metrics and the Responsible Entity noted that they have recently traded below the Trust’s net tangible asset backing (NTA).

Metrics decided that proceeding to settlement and completion of the offer is not, at this time, in the best interests of MXT unitholders and prospective investors as it would have locked subscribers into a loss as a result of recent market falls.

All application monies received will be refunded as soon as practicable.

In the meantime, the Responsible Entity intends to pay cash distributions to MXT unitholders monthly.

Metrics considers that the current market price of MXT units represents good value and, accordingly, the MCP Wholesale Investments Trust and other funds managed by Metrics have recently acquired units in the Trust.

Metrics continues to enjoy a strong pipeline of lending opportunities and once market conditions stabilise, it may seek to raise further capital in order to invest to further diversify the trust.

Metrics was the first corporate loan lender in Australia to list an investment trust (LIT) on the ASX in 2017, providing investors with access to a diversified portfolio of corporate loans, in what has become known as ‘the new fixed income’.

12 March 2020