18th Nov 2013 11:02
LONDON (Alliance News) - Independent News & Media PLC Monday said it will do its EUR40 million capital raising through a placing and open offer after talking with investors.
The company had wanted to raise the fresh capital through a rights issue, but said the firm placing, placing and open offer will secure confidence that it will get proceeds to be able to restructure within the required timeframe, give all shareholders the chance to participate at the same price, and attract new investors to the business.
It expects the firm placing to be about 70% of the total capital raising and the open offer about 30%.
It said key existing shareholders with about 36.3% of its stock had indicated they're like to participate in the firm placing and open offer. Its largest shareholder, Denis O'Brien will maintain his 29.9% stake in the newspaper company, while Dermot Desmond will raise his stake to 15%, from 6.4%.
The capital raising is the last part of a deal the company did to restructure its debts with its lenders earlier this year. It intends to pay off EUR50 million through the capital raising and a EUR10 million share issue, bringing its debt down to EUR118 million plus other facilities and credit lines of about EUR10 million.
"The completion of this final stage will provide INM with financial stability and give it a firm platform to implement its business plan and strategic repositioning and will also significantly lower the group's annual interest costs and extend INM's debt maturity profile," it said in a statement.
By Steve McGrath; [email protected]; @SteveMcGrath1
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