16th Mar 2015 13:14
LONDON (Alliance News) - Petropavlovsk PLC Monday said 35.35% of the available shares in its GBP155.1 million rights issue were taken up and said Bank of America Merrill Lynch has not managed to find any subscribers for the remaining shares, although it is almost fully underwritten or committed.
In a statement earlier on Monday, the company said it had received valid acceptances for nearly 1.1 billion new shares and Merrill Lynch International is looking for subscribers for the remaining 2.0 billion in the issue.
Later Monday, Petropavlovsk said Merrill Lynch has not managed to secure any further take-up of the issue, meaning the sub-underwriters and some other existing bondholders will acquire any remaining underwritten shares.
Petropavlovsk PLC shares soared late last month after its shareholders voted in favour of a refinancing programme, which included a rights issue and bond exchange offer. The GBP155.1 million rights issue and a new five-year USD100 million convertible bond were intended to "secure the group's immediate future" and allow it to increase production in 2015.
The rights issue offered 157 new shares for 10 existing shares at 5.0 pence per new share.
Petropavlovsk shares were down 1.9% to 5.152 pence on Monday.
Some GBP50.8 million of the issue was cash underwritten by Petropavlovsk founders, Chairman Peter Hambro and Chief Executive Pavel Maslovskiy, and by some bondholders, while a further GBP104.0 million was covered by debt-for-equity exchange commitments by bondholders.
By Steve McGrath; [email protected]; @stevemcgrath1
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