24th Sep 2014 06:55
LONDON (Alliance News) - Assura Group Ltd Wednesday said it will raise up to GBP180.2 million gross through a share issue, money it will use to fund a GBP95 million near-term pipeline of acquisitions and developments and to reduce its debt by about GBP55 million.
In a statement, the healthcare property developer said it will raise about GBP155.2 million gross, or about GBP150.0 million net of expenses, by issuing 356.8 million shares at 43.5 pence each through a firm placing, placing and open offer. It will raise a further GBP25.0 million gross by issuing 57.5 million shares at the same price through a share subscription.
The price is a 6.95% discount to the company's closing price of 46.75 pence on Tuesday.
The firm placing, placing and open offer has been fully underwritten by Liberum Capital Ltd and Oriel Securities Ltd, while the subscription is not being underwritten.
Assura said it has agreed non-binding heads of terms agreement to acquire a portfolio of 11 purpose-built medical centres for about GBP62 million, and has agreed commercial terms on 13 further individual asset acquisitions for about GBP18 million in total. It also has seven developments with an estimated future expenditure of about GBP15 million, and is already on-site at five of those.
The company said it also plans to use the money to cut debt by about GBP55 million to approximately GBP482 million, cutting its overall loan to value ratio to about 52%, from 65%. That includes the GBP95 million acquisition investment from the share issue proceeds, but excludes any proceeds raised in the subscription offer.
"The board considers that a lower loan to value ratio would be more appropriate in the medium term and would provide greater flexibility for future development and acquisition activity," it said in a statement.
Shareholders will vote on whether to approve the share issue at an extraordinary general meeting on October 14.
Assura had a net asset value per share of 43.4 pence at the end of March, a 20% increase over the previous two years. It said a valuation of its portfolio on August 22 had increased the figure by 1.7 pence.
By Steve McGrath; [email protected]; @stevemcgrath1
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