10th Jun 2020 11:39
(Alliance News) - Whitbread PLC said Wednesday the joint bookrunners for its 1 for 2 rights issue have found buyers for the remaining 5.8 million shares not originally taken up in the issue.
The Premier Inn-owner had received 61.5 million acceptances from shareholders, raising a total of GBP921.8 million.
However, Whitbread said JP Morgan Cazenove and Morgan Stanley, who are acting as joint global coordinators, would aim to sell the remaining 5.8 million shares.
Whitbread noted the original acceptances, priced at 1,500 pence per share, were 91% of the shares in the fully underwritten rights issue.
The remaining 5.8 million shares were subscribed for at 2,550p each - raising a further GBP148.5 million. As a result, the total rights issue raised GBP1.07 billion.
Shares in Whitbread were down 3.9% in London on Wednesday at 2,549.00p.
Whitbread has previously said the rights issue will be used to provide a platform for future growth and investment.
In mid-May, when the rights issue was announced, the company said it had "significant" liquidity entering the new financial year and the Covid-19 crisis.
It said its UK hotels are ready to open when the government advises, but added that its internal scenario assumes that hotels will be closed, or will have low levels of occupancy, until September.
"The purpose of the rights issue is to ensure that Whitbread emerges from the Covid-19 pandemic in the strongest possible position to take advantage of its long-term structural growth opportunities and win market share in both the UK and Germany," the company said.
Whitbread added that the funds also will provide further liquidity headroom in the event of a resurgence of the Covid-19 outbreak. As at May 15, the company had cash of GBP300 million and access to a GBP950 million revolving credit facility, of which GBP50 million is already drawn.
By Paul McGowan; [email protected]
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