16th Mar 2015 08:57
LONDON (Alliance News) - Petropavlovsk PLC Monday said 35.35% of the available shares in its GBP155.1 million rights issue were taken up, and Bank of America Merrill Lynch is now trying to find subscribers for the remainder, although it is almost fully underwritten or committed.
In a statement, the company said it had received valid acceptances for nearly 1.1 billion new shares and Merril Lynch International is looking for subscribers for the remaining 2.0 billion in the issue. If that fails, the sub-underwriters and some other existing bondholders have agreed to acquire any remaining underwritten shares.
Petropavlovsk PLC shares soared late last month after its shareholders have voted in favour of a refinancing programme, which included a rights issue and bond exchange offer. The GBP155.1 million rights issue and a new five-year USD100 million convertible bond were intended to "secure the group's immediate future" and allow it to increase production in 2015.
The rights issue offered 157 new shares for 10 existing shares at 5.0 pence per new share.
Some GBP50.8 million of the issue was cash underwritten by the founders, Chairman Peter Hambro and Chief Executive Pavel Maslovskiy, and by some bondholders, while a further GBP104.0 million was covered by debt-for-equity exchange commitments by bondholders.
Petropavlovsk shares were down 0.6% at 5.22 pence Monday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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