Embattled shopping centre owner Intu is planning to raise as much as £1bn in fresh equity next month in a bid to shore up its balance sheet.
In an announcement responding to a Sunday Times article, the company this morning said it was targeting an equity raise alongside its full year results at the end of February.
“The company is currently engaged in constructive discussions with both shareholders and potential new investors on the proposed equity raise,” it said.
The company is working with Bank of America Merrill Lynch, Rothschild and UBS on the planned rights issue, according to the Sunday Times.
Intu’s loan-to-value (LTV) was last reported at 57.6% as the value of its properties continues to fall as income is impacted by failing retailers.
By raising equity, Intu hopes to pay down its near £5bn of debt with its next material debt maturity in early 2021.
In addition to the fund raise, the company has been selling off assets and made nearly £500m worth of sales in 2019. In December 2019. it exchanged contracts to dispose of intu Puerto Venecia for €475m (intu share: €238m) and Intu said it was in advanced negotiations to sell intu Asturias.
INTU : Intu seeks £1bn equity raise