5th Nov 2020 18:05
(Alliance News) -Â Casino operator Rank Group PLC on Thursday said it is seeking to raise GBP70 million through a share placing and retail offer.
The total number of placing shares and retail shares are expected to represent just under 20% of the firm's existing issued share capital.
The price of the placing shares will be determined after the bookbuild's close. The retail shares will be issued at the same price as the placing shares.
The proceeds of the fundraise will be used to strengthen Rank's balance sheet, in order to maintain "appropriate liquidity covenant headroom" on its debt facilities under various trading scenarios.
The funds will also provide "ample" working capital to operate through "this challenging trading environment", and enable the company to continue to deliver on its transformation 2.0 programme.
Earlier on Thursday, Rank had confirmed it was in discussions with advisers for an equity issue of up to 19.9% of its existing share capital.
Shares in Rank closed flat at 86.30 pence in London on Thursday.
By Lucy Heming;Â [email protected]
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