Rural Services provider AWB Ltd
(ASX:AWB) today announced a capital raising to raise $459 million and the refinancing of $575 million of domestic corporate debt facilities.
The company will conduct the raising through an entitlement offer and placement to institutional investors.
The offer will be at a fixed price of $1 a share which represents a 30.8 per cent discount to its closing price yesterday.
Managing director Gordan Davis says proceeds of the raising will be used to strengthen AWB’s balance sheet and to provide financial flexibility through the subsequent reduction in debt.
AWB says it has also reached agreement with its core banks to refinance domestic corporate debt facilities due to mature next month. The new facilities total $575 million.
AWB says it will also recognise a $120 million non-cash impairment against Landmark Financial Services goodwill in the 2009 financial year. AWB reported a net profit of $64.28 million in 2008.
Another company looking to tap the market for equity is property investor Valad Property Group (ASX:VPG) who today announced an equity raising to raise $59.5 million before costs.
The group says the estimated net proceeds of $56.5 million will be used to settle the Scarborough Vendors Group deferred liability of 29.5 million pounds.
The equity raising is fully underwritten at an issue price of 10 cents a share which represents a 37.5 per cent discount to Valad’s closing price of 16 cents per stapled security yesterday.
The raising is made up of a $40.2 million entitlement offer and an institutional placement to raise $19.3 million.
Managing director Peter Hurley says in the recent past the company has received feedback from a number of its existing investors indicating that they would be prepared to support raising equity in order to pay down liabilities such as the contracted payment to the Scarborough Vendors Group. Valad Property Group posted a $248 million loss in 2008.
Pharmaceutical product manufacturer Probiotec Ltd (ASX:PBP) says it is undertaking a capital raising of approximately $12 million.
In addition to the placement, the company says its directors and senior management are undertaking a sell down of some of their shares to institutional investors.
Under the placement, 4.7 million shares will be issued to institutional investors at $2.55 a share a discount of 5.2 per cent from its closing price.
The funds raised will be used to expand its manufacturing operations to meet increased demand, both internationally and domestically, improve the group’s supply chain processes and take advantage of strategic opportunities that may arise.
Managing director Wayne Stringer says the capital raising will enable the group to rationalise its operations whilst at the same time securing the ability of the group to continue to grow and expand.
Mr Stringer says the expansion of Probiotec’s manufacturing operations will significantly improve its supply chain arrangements and drive a range of efficiencies and cost improvements into its businesses. Probiotec’s profits have been increasing year on year for the past four years.
And mineral resources explorer Apex minerals NL (ASX:AXM) is also looking to raise equity after placing its shares in a trading halt ahead of an announcement regarding a proposed recapitalisation and restructure arrangement.
The company is planning to undertake a rights issue that it says will see it emerge debt free and with approximately $50 million cash to fund mine development and working capital.
The Australian Financial Review says it understands Apex is looking to raise around $108 million, $50 million to be used to develop its Wiluna mine.
The proposal will allow the company to implement the results of a recent operational review, which concluded that Apex will produce over 140,000 ounces a year once the mine is fully ramped up.
Apex says the proceeds from the raising will also allow it to diversify its sources of ore production from one zone to four. Apex Minerals has posted losses over the last five years.
