Chemring £80.8m rights issue
Chemring raised equity to cut its debt after its US noteholders and bank syndicates waived and varied its covenants.
- Company
- Chemring Group
- Type
- Equity raise
- Status
- Completed
- Date
- 21 Jan 2016
- Value
- £80.8m
- US$ equivalent
- US$109m
- Value basis
- Fully underwritten 4 for 9 rights issue at 94p (about £80.8m gross); 95.78% taken up
- Region
- UK
- Segment
- Listed equity
Parties
- Chemring Group issuer
Key terms
- Price
- 94p a share, a 38.2% discount to the theoretical ex-rights price
- Joint sponsors and bookrunners
- Investec and J.P. Morgan Cazenove, with Barclays as co-bookrunner
- Use of proceeds
- Net proceeds of £75.2m: £48.5m of US Notes redeemed, the rest for make-whole premiums, waiver fees and general corporate purposes
- Take-up
- 95.78% of the new shares (23 Feb 2016)
Sources
- Chemring RNS: £80.8 million rights issue (Investegate copy) investegate.co.uk · 21 Jan 2016
- Chemring RNS: results of rights issue (Investegate copy) investegate.co.uk · 23 Feb 2016
Record DEF-INV-2016-0006. Investments are kept apart from the financings register and never counted in debt totals.
