TPG Telecom Limited
(ASX:TPM) has announced the launch of a fully underwritten institutional placement to raise $300 million.
The telecommunications and IT company referred to the acquisition of iiNet Limited in September 2015, for which a number of debt facilities were established to fund cash consideration paid to iiNet’s shareholders and refinance iiNet’s existing debt arrangements.
The company said the net proceeds of the raising will be used to partly repay the acquisition debt in order to support ongoing capex initiatives, as well as minimizing the company’s overall cost of funding.
TPG Telecom also said a non-underwritten share purchase plan will be offered to eligible shareholders in Australia and New Zealand.
TPG Telecom reported a net profit of $224.1 million at 30 July 2015.
