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.
