16th Jan 2020 14:53
(Alliance News) - Book publisher Quarto Group Inc on Thursday confirmed plans to raise GBP13.9 million in gross proceeds through an open offer of shares.
The open offer will give existing Quarto shareholders the opportunity to subscribe for 20.4 million shares at 68 pence per share on the basis 1 new share for every 1 already held.
The money raised will be used to reduce bank debt. Net proceeds are expected to total GBP12.8 million.
London-based Quarto said that as November 30 last year, the size of its debt was USD54 million, around GBP41.4 million. It also owed USD13 million to the Lau Parties and Recruit & Co Ltd.
Quarto said its lenders have agreed to extend the final repayment date of its existing facilities agreement to July 31, 2021 and to extend some of its covenants. However, if the open offer does not complete, the agreements with the lenders will be terminated and any outstanding amounts owed will have to be repaid by August 31 this year.
On Wednesday, Quarto had announced its intention to make the open offer.
Shares in were down 6.0% at 71.01p each on Thursday afternoon in London, giving the company a market capitalisation of GBP14.5 million.
By Ife Taiwo; [email protected]
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