Capital Raising of Â£60.6m to secure full financing for the HYLAS 4 satellite
Capital Raising of £60.6m to secure full financing for the HYLAS 4 satellite
Avanti Communications Group plc (“Avanti” or “the Group”), a leading provider of satellite data communications services in Europe, the Middle East and Africa, today announces a Capital Raising subject to shareholder approval by way of the issue of 28,866,720 New Ordinary Shares with new and existing institutional investors at 210p per New Ordinary Share to raise approximately £60.2m (after expenses).
The Capital Raising, in combination with the Avanti’s ability to issue up to a further $125m under its existing bond indenture (on the basis that the additional bonds do not exceed a ratio of 1.25:1 to the Capital Raising), fully funds the cost of the construction and launch of HYLAS 4 and takes the Group through to the point where it is expected to be free cash flow positive. The Directors expect that this will consolidate Avanti’s first mover advantage across EMEA, therefore increasing the future cash generation potential of the Group.
The Capital Raising will raise approximately £60.2m (net of expenses) through the issue of the New Ordinary Shares at the Issue Price of 210p, which represents a discount of 5.7 per cent. to the closing middle market price of 222.75p per Existing Ordinary Share on 4 February 2015. The New Ordinary Shares will represent approximately 20.4 per cent. of the Group's issued ordinary share capital immediately following Admission. Application will be made to the London Stock Exchange for the New Ordinary Shares to be admitted to trading on AIM (“Admission”). It is expected that Admission will become effective and that dealings in the New Ordinary Shares will commence on AIM at 8.00 a.m. on 24 February 2015.
The Capital Raising is conditional, inter alia, upon the Group obtaining approval from its Shareholders to grant the Directors authority to allot the New Ordinary Shares and to disapply statutory pre-emption rights which would otherwise apply to the allotment of the New Ordinary Shares. The Capital Raising is also conditional upon Admission.
Definitions used in this announcement have the same meaning as those used in the circular which will be posted to Shareholders today and will be available on the Group’s website www.avantiplc.com.
For further information please contact:
Avanti: Matthew Springett, +44 (0)20 7749 6709
Tulchan Group: James Macey White, +44 (0)20 7353 4200
Redleaf: Hannah Nicolas, +44 (0)20 7382 4734
Cenkos Securities: Max Hartley (Nomad) / Julian Morse, +44 (0)20 7397 8900