Redefine International has launched a £127.5m equity offering to raise funds as it continues to negotiate the terms of a key loan facility.
The firm, which has been undertaking a long process of restructuring debt in the UK and on the Continent, is issuing 490m shares at 26p.
Some 89m new ordinary shares will be issued through a placing with “leading institutions” to raise £23.3m. Around 401m new ordinary shares will be issued through an open offer to raise a further £104.3m.
The issue price of 26p represents a 22.4% discount to its current 33.5p share price and a 25.9% discount to the firm’s NAV of 35.08p a share in its interim results to the end of February.
The offer has the support of the company’s 71.7% shareholder, Redefine Properties International.
Redefine, which took over government landlord Wichford in July, recently agreed terms to extend and restructure its £114.6m Delta facility, but is in negotiations with loan servicer Hatfield Philips over the £200m Gamma facility, which matures in October.
It said that, given the existing loan-to-value ratio of the loan, which is secured against assets valued at around £155.7m, its directors do not recommend to shareholders that “a significant amount of capital be utilised to refinance the facility”.
Redefine acknowledged that the servicer “may appoint an administrator to realise the assets and utilise the proceeds to repay the Gamma facility” but expect that the servicer will instead grant a standstill period while talks continue.
