Can a Hybrid Capital Raise Strengthen Funding While Maintaining Flexibility?
Source: Kapitales Research
Highlights:
Latitude Group Holdings Limited (ASX: LFS) has launched Capital Notes 2 targeting approximately AU$100 million, with flexibility to adjust the final size.
The offer includes both a reinvestment option for existing Capital Notes 1 holders and a new money component for fresh investors.
Proceeds will be directed toward general corporate purposes, including the potential redemption of existing Capital Notes 1.
What Is Being Offered to Investors?
Latitude has introduced Capital Notes 2, which are perpetual hybrid securities with no fixed maturity date unless redeemed or converted. The company may elect to exchange these securities from 28 April 2031 or earlier under specific events such as regulatory or tax triggers. The share price was AU$0.930, marking an increase of around 0.5%, suggesting a stable market reaction.
How Is the Offer Structured?
The offer consists of two components:
A Reinvestment Offer for existing Capital Notes 1 holders to roll over their investment.
A New Money Offer for eligible investors to participate with fresh capital.
The minimum application size is AU$5,000, with additional investments accepted in increments thereafter.
What Returns and Features Are Expected?
Holders are expected to receive distributions on a quarterly basis, with rates that adjust over time; these payments are at the company’s discretion, accumulate if unpaid, and are expected to carry franking benefits. The margin is expected to fall within a range of 4.15% to 4.35% per annum.
In terms of capital structure, these notes rank above ordinary equity but below senior debt obligations in a winding-up scenario.
What Are the Key Timelines?
Prospectus lodged: 24 March 2026
Bookbuild completion: 27 March 2026
Issue date: 28 April 2026
ASX listing (LFSPB): 29 April 2026
Outlook
Latitude expects its ongoing focus on core consumer lending segments in Australia and New Zealand to support disciplined growth. The company remains focused on managing margins, funding costs, and credit performance, while continuing to invest in technology and operational efficiency to enhance long-term returns.
Note- All data presented is based on information available at the time of writing.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Can a Hybrid Capital Raise Strengthen Funding While Maintaining Flexibility?
Highlights:
What Is Being Offered to Investors?
Latitude has introduced Capital Notes 2, which are perpetual hybrid securities with no fixed maturity date unless redeemed or converted. The company may elect to exchange these securities from 28 April 2031 or earlier under specific events such as regulatory or tax triggers. The share price was AU$0.930, marking an increase of around 0.5%, suggesting a stable market reaction.
How Is the Offer Structured?
The offer consists of two components:
The minimum application size is AU$5,000, with additional investments accepted in increments thereafter.
What Returns and Features Are Expected?
Holders are expected to receive distributions on a quarterly basis, with rates that adjust over time; these payments are at the company’s discretion, accumulate if unpaid, and are expected to carry franking benefits. The margin is expected to fall within a range of 4.15% to 4.35% per annum.
In terms of capital structure, these notes rank above ordinary equity but below senior debt obligations in a winding-up scenario.
What Are the Key Timelines?
Outlook
Latitude expects its ongoing focus on core consumer lending segments in Australia and New Zealand to support disciplined growth. The company remains focused on managing margins, funding costs, and credit performance, while continuing to invest in technology and operational efficiency to enhance long-term returns.
Note- All data presented is based on information available at the time of writing.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au