UK regeneration specialist St Modwen plans to raise £102.1 mln (EUR 114 mln) to reduce debt and provide funds for acquisitions. The fund raising involves the placement of 80 million shares at 135 pence each, a discount of 38.4% to the closing price of 219.25 pence per share on 13 May 2009.
UK regeneration specialist St Modwen plans to raise £102.1 mln (EUR 114 mln) to reduce debt and provide funds for acquisitions. The fund raising involves the placement of 80 million shares at 135 pence each, a discount of 38.4% to the closing price of 219.25 pence per share on 13 May 2009.
St Modwen also announced it has entered into amendment agreements with its lenders.
Bill Oliver, CEO of St. Modwen, said: 'The favourable terms on which we have secured our revised covenants demonstrate a strong level of support of the company from our banks.'
'This, together with the equity issue - which enables us to reduce our outstanding debt, lower our gearing and increase our financial flexibility - creates more headroom for us to take advantage of the current marketplace by acquiring well priced assets and developing our long-term schemes where there is current market opportunity.'
