Business
Proposed placing of new ordinary shares
Proposed placing of new ordinary shares.
About this update from Autotrader Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 3685I\n Auto Trader Group plc\n 01 April 2020\n \n \n \n \n \n \n \n \n \n \n \n \n \n THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR ANY JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.\n \n \n \n \n \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR IMMEDIATE RELEASE.\n \n \n \n \n \n 1 April 2020\n \n \n AUTO TRADER GROUP PLC\n \n \n \n \n \n PROPOSED PLACING OF NEW ORDINARY SHARES\n \n \n \n Auto Trader Group plc (\"Auto Trader\" or the \"Company\" or, together with its subsidiaries, the \"Group\"), the UK's largest digital automotive marketplace, today announces its intention to conduct a non-pre-emptive placing of up to 46,468,300 new ordinary shares of one pence per share (the \"Placing Shares\"), representing approximately 5% of the current issued share capital of the Company, with institutional investors (the \"Placing\"). The Placing will be conducted through an accelerated bookbuilding process which will be launched immediately following this announcement, in accordance with the terms and conditions of the Placing set out in the Appendix.\n \n \n Rationale for the Placing and Use of Proceeds\n \n \n The Group's balance sheet is strong. At the end of February, the Group had drawings of £289 million from a £400 million revolving credit facility, with a net debt/EBITDA ratio of 1.1x, well below the covenant level of 3.5x. Covenants are tested in March and September and look at a rolling 12 month period. As well as debt cover, the test includes interest cover for which the last 12 months' EBITDA must be at least 3x the net interest expense. The Group expects to meet the March 2020 test with significant headroom available. Looking forward to the Group's September 2020 covenant test, the Board expects the Group's net debt/EBITDA ratio to rise as a function of the free services being provided to the Group's customers but will remain well below the maximum covenant threshold. \n \n \n The Board believes it is important to support the Group's customers and employees through this period of uncertainty. The Board also believes there may be attractive opportunities to stren...