25th Mar 2020 14:20
(Alliance News) - SSP Group PLC on Wednesday confirmed it has raised over GBP200 million amid a collapse in trading caused by Covid-19.
SSP placed 86.2 million new shares at a price of 250 pence each, raising GBP216 million. This price is a 6.2% premium to SSP's closing price on Tuesday in London, but a 7.7% discount to the middle market price at the time the company and joint coordinators agreed on the price.
SSP shares were 11% higher on Wednesday afternoon at 261.00p. The placing was run by Barclays PLC, JPMorgan Cazenove, Goldman Sachs Group Inc, and HSBC Holdings PLC.
SSP owns brands such as Upper Crust and Ritazza, which are found in railway stations and airports. Widespread travel bans across the globe due to Covid-19 have "severely" impact passenger numbers, SSP said earlier Wednesday, in the UK, Europe and North America.
In its early statement, SSP had announced the placing but had given no further details.
The placing comes as SSP faces a severe downturn in revenue due to Covid-19. Revenue in March is set to be 40% to 45% lower year-on-year, and in the second half ending September it could decline as much as 85% year-on-year.
SSP also halted its buyback programme and deferred dividends. On top of the placement, it also agreed a new GBP112.5 million facility with a trio of lenders.
Chief Executive Simon Smith earlier Wednesday said SSP is facing "hugely challenging times".
By George Collard; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
SSP Group