17th Apr 2020 11:32
(Alliance News) - Hollywood Bowl Group PLC on Friday said it intends to raise GBP10.9 million through the placing of 7.5 million shares at 145 pence each.
The placing price represents a premium of 1.4% to the Thursday closing price of 143p. Shares in the ten-pin bowling operator were 7.0% higher at 153.00p each on Friday morning in London.
Hollywood Bowl said the placing will be carried out through an accelerated bookbuild with Investec Bank PLC acting as sole broker and sole bookrunner.
Members of the executive team have agreed to subscribe for up to 63,442 of the placing shares.
The new cash will be used to strengthen the company's balance sheet, working capital and liquidity position, it said.
Hollywood Bowl said that since the closure of all its venues in March, it has implemented cash conservation measures such as delaying all discretionary spend, taking advantage of government schemes, and reaching agreements with landlords to defer payments. The company said that as a result of measures taken, it expects a monthly net cash burn of around GBP1.6 million while all venues remain closed.
At the end of March, Hollywood Bowl had cash of GBP15.6 million and GBP30.3 million of debt, drawn from its GBP35 million facility. On April 2, the company said that its lenders agreed a GBP20 million extension to its revolving credit facility resulting in the group having GBP11 million undrawn under its facility as at April 8.
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Hollywood Bwl