1st Apr 2020 13:33
(Alliance News) - Auto Trader Group PLC on Wednesday confirmed it has raised nearly GBP190 million in a share placing to bolster its balance sheet.
The FTSE 100 firm earlier on Wednesday said it would place up to 46.5 million shares in a bookbuild run by Bank of America Corp.
Auto Trader has placed 46.5 million shares at 400.0 pence each, raising GBP186 million. This price is an 8.9% discount to Auto Trader's closing price on Tuesday but a 0.9% premium to the middle market price at the time the firm and BofA agreed on the price.
Shaes were 10% lower on Wednesday afternoon at 393.20p.
Auto Trader said earlier Wednesday: "The net proceeds of the placing will be used to strengthen Auto Trader's balance sheet and liquidity position, support all stakeholders, increase our flexibility to take advantage of future opportunities, and increase certainty around meeting covenant tests in future years.
"Furthermore, this equity raise will allow us to resume our existing capital return policy at the earliest prudent opportunity."
On trading, the company also said results for its year ended March 31 will be "broadly in line with the market consensus", but it cannot provide guidance for financial 2021 due to uncertainty caused by Covid-19.
By George Collard; [email protected]
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