3rd Mar 2014 09:37
LONDON (Alliance News) - Premier Foods PLC Monday confirmed that it is continuing to review its options regarding its future capital structure and will update the market when it puts out its 2013 results.
It said it was responding to recent comments in the press regarding a potential capital restructuring.
At the end of January, Sky News reported that Premier Foods was seeking to raise about GBP350 million in a rights issue and had demanded that banks Credit Suisse, HSBC and Jefferies, who it had appointed to underwrite the issue, also be prepared to make it loans to help it overhaul its finances.
Premier Foods last month said it would spin off its bread business into a new joint venture with The Gores Group, and use the GBP28 million in cash inflows it received to invest in its grocery business. It had said at that time that it expected its net debt at the end of 2013 to be about 10% down on the level at the end of 2012.
The company has been struggling with its debt pile for several years, and media reports say a wide-ranging capital restructuring will be announced in an attempt to finally put it on a firm financial footing.
Premier Foods shares were down 4.1% at 138.17 pence Monday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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