18th May 2018 09:38
LONDON (Alliance News) - Troubled Carpetright PLC on Friday confirmed it has begun a previously planned fundraise worth GBP60.0 million as part of its company voluntary arrangement.
Carpetright is placing 232.5 million new shares at a price of 28.00 pence each, a 16% discount to its closing price on Tuesday of 33.25p.
Shares were trading at 36.26p each on Friday morning, 9.0% higher.
The company said GBP6.0 million of this will cover CVA costs, GBP12.5 million the repayment of the principal for a loan secured from shareholder Meditor, and GBP33.0 million will fund its capital expenditure plans. The rest will be used for working capital needs.
The placing is conditional on shareholder approval and there being no challenge to the CVA.
Chief Executive Wilf Walsh said: "We are delighted to have received such strong support from our shareholders and other investors in achieving this fully underwritten fundraise. The GBP60 million proceeds from the placing and open offer will give us the resources we need to complete our restructuring and accelerate our recovery plan.
"As well as funding implementation of the CVA to create a right-sized estate of stores on sustainable rents, it will provide the necessary capital to refurbish and modernise the ongoing store estate and to upgrade our digital platform - both vital investments in our future. We believe that a recapitalised market leader will ultimately be better for customers, suppliers, landlords and shareholders."
Carpetright in mid-April said it would shut 92 stores as part of its CVA, and also announced at that time a plan to raise approximately GBP60.0 million.
Later that month it avoided administration as creditors approved the CVA.
Related Shares:
CPR.L