6th Aug 2020 10:35
(Alliance News) - Meggitt PLC on Thursday responded to a press report that is considering an equity raise by saying it is reviewing "a range of trading scenarios and associated actions to mitigate any material adverse change to the industry outlook".
On Wednesday, Bloomberg reported that the UK aerospace and defence contractor is considering selling up to USD600 million in equity and is working with advisers to review equity and debt finding options.
Shares in Meggitt were down 5.9% at 277.80 pence on Thursday in London, giving the company a market capitalisation of GBP2.17 billion.
Citing people familiar with the matter, Bloomberg reported that one measure under consideration is a share sale equal to as much as 20% of Meggitt's issued share capital.
https://www.bloombergquint.com/business/meggitt-is-said-to-consider-up-to-600-million-equity-offering
In response, Meggitt said its financial position and liquidity "remain strong".
It has continued to trade in line with internal expectations. "While there have been initial signs of a recovery in the civil aerospace sector, considerable uncertainty remains in relation to COVID-19," Meggitt said.
In addition, Meggitt noted it had GBP1.70 billion in committed lending facilities in place as at June 30, providing headroom of GBP856 million. In addition, the company has access to additional liquidity as an eligible issuer under the Bank of England's Covid Corporate Financing Facility.
By Dayo Laniyan; [email protected]
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