8th Apr 2014 09:53
LONDON (Alliance News) - Premier Foods PLC Tuesday said it had completed the rights issue portion of its recent capital restructuring.
In early March, the owner of brands including Ambrosia custard, Bisto gravy granules, Sharwood's sauces and Mr Kipling cake said it was seeking to raise over GBP1.1 billion in new funds and credit facilities at lower interest rates and improved terms to transform its financial position. It has been saddled in recent years by a massive debt pile and rising interest costs.
The capital restructuring included raising GBP353 million in a placing and rights issue, funds it said it would use to reduce its debt. It has also agreed a far less-onerous schedule of payments to reduce the deficit on the company's pension scheme and raised a new credit facility and securitisation facility with a smaller group of banks at better terms and interest rates than its previous facility. Finally, it said it would raise GBP475 million through issuing senior secured notes.
It completed the bond issue a few days later, and Tuesday said it had now completed its rights issue.
The 8 for 5 issue of 506.8 million shares at 50 pence each received acceptances for 488.8 million shares, or 96.4% of the total number. The remainder were placed by underwriters Credit Suisse, Jefferies and HSBC at 67 pence a share.
Premier Foods shares were up 2.2% at 70.00 pence a share Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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