Warrnambool Cheese and Butter Factory Company Holdings Limited
(ASX:WCB) has announced it will raise up to $142 million to repay debt.
The 3 for 8 pro-rata renounceable entitlement offer will have an offer price of $6.75 per share, an 18.2 percent discount on the 9 June closing price.
A strengthened balance sheet will allow the company to continue its capacity expansion, with a $40 million project planned to commence in FY17.
Major shareholder Saputo Dairy has committed to providing WCB with $124.8 million in new equity as part of the raising.
Warrnambool Cheese and Butter Factory Company Holdings Limited reported a net profit of $4.2 million at 31 March 2016.
