15th May 2018 18:12
LONDON (Alliance News) - Zotefoams PLC said Tuesday it has proposed a placing of up to 3.9 million shares at 530.00 pence each with existing and new institutional and other investors to raise up to about GBP20.6 million.
The 3.9 million placing shares will represent up to 8.8% of the existing shared capital of the polyolefin foam manufacturer. The placing price represents a 2.9% discount to the closing price of 546.00p May 14.
Shares in Zotefoams closed Tuesday at 530.00p each.
A new GBP57.5 million secured debt facility, plus a GBP25 million accordion feature, has been agreed on "attractive terms" to replace the existing debt facilities of about GBP35 million.
The proceeds will be used to fund the planned capital investment of about GBP23 million in a new manufacturing facility in central Europe and "higher working capital associated with organic growth and product mix enrichment from higher margin high performance products sales".
The new facility is expected to open in 2020.
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