16th Apr 2020 09:47
(Alliance News) - Informa PLC on said it has applied for funds under the UK's Covid corporate financing facility and will conduct a share placing as the events and business publishing firm outlined more measures under its "Covid-19 Action Plan".
Informa has also temporarily suspended all dividends, including the withdrawal of its final 2019 payout. It plans to review its dividend policy later in 2020.
It also reported "constructive discussions" with its US private debt holders over covenant waivers.
Informa added that it has completed an application to secure funds under the Bank of England's Covid corporate finance facility. Informa has an existing revolving credit facility of GBP900 million and surplus credit facility of GBP750 million.
On a proposed placing and subscription, the company said the shares will not exceed 250.3 million, which represents about 20% of its existing capital.
The stock was down 0.3% at 415.50 pence each in London on Thursday morning. If the shares were placed at its current price, Informa will secure about GBP1.04 billion from the issue. The price of Informa shares has more than halved since the year began, starting 2020 at 867.40p.
"Since the end of January, the scale, depth and reach of the Covid-19 global pandemic has extended well beyond initial predictions, with half the world's population currently in a state of lockdown, widespread international travel restrictions and many businesses and industries in temporary shutdown," Informa said.
The company said the reduced activity is set to continue through to the second quarter of 2020 with a gradual recovery in the final half of the year. This represents the company's base case estimate. Its downside forecast however, plans for no events revenue at all until the fourth quarter.
The "anchor" of the group remains "the resilient and predictable" subscriptions-related businesses, which have continued to grow well, it said.
By Eric Cunha; [email protected]
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