UK listed property firm Redefine has announced plans to issue 490 million new shares to raise £127.5 mln (EUR 160 mln) of equity aimed at reducing leverage and financing acquisitions.
UK listed property firm Redefine has announced plans to issue 490 million new shares to raise £127.5 mln (EUR 160 mln) of equity aimed at reducing leverage and financing acquisitions.
The issue, priced at 26 pence per share, represents a discount of 7.5 pence or 22.4% to the closing price of 33.5 pence on 12 September 2012, as well as a discount of 26% to the company's fully diluted net asset value.
'The board remains confident of the group's long-term growth prospects, but in order to achieve this growth, the group needs to reduce its financial leverage and create a stable long-term capital structure,' Redefine said in a statement. The company's loan-to-value stands at 82.5% at present, and is to be reduced to 60% in the medium term.
The net proceeds will be used to reduce the group's financial leverage through the repayment and restructuring of certain debt facilities as well as to take advantage of distressed and/or attractive investments.
International law firm Pinsent Masons advised Redefine International on the issue.
