Raven Russia has announced proposals for a fundraising, for a minimum of £105.5m, by way of a placing of new convertible redeemable preference shares. The company says that it has secured firm commitments from existing institutional investors and the EBT to subscribe for an aggregate amount of approximately £105.5m convertible preference shares and is in discussions with further investors to potentially increase the size of the placing. The board consider that the proposed issue will deliver a number of significant benefits to the company and its investors, including allowing the Group to take advantage of new investment opportunities and reduce outstanding amortising debt, allowing the company to diversify its sources of funding whilst minimising dilution to ordinary shareholders, and improving the Group’s debt amortisation profile.
The convertible preference shares will, on completion of the placing, be issued by the company at a subscription price of £1.00, have a 10 year period to maturity from the date of issue, have a cumulative preference dividend of 6.5% per annum on the subscription amount (payable in equal instalments quarterly in arrears) and will be redeemable at maturity at a price of £1.35. The convertible preference shares will be convertible at a rate of 1.818 ordinary shares for each convertible preference share (subject to certain adjustments) which is equivalent to approximately 55p per ordinary share, and represents a premium of 66.68% to the company’s ordinary share price as at the close of business on 16 May 2016 and 12.76% to the Group’s latest published audited adjusted fully diluted net asset value per ordinary share. The placing is conditional on ordinary shareholders and preference shareholders passing approval. Further details to follow in due course.
Raven Russia announced a minimum £105.5m fundraising : RUS