Business
£80.8 million Rights Issue
£80.8 million Rights Issue.
About this update from Chemring Group Plc
[{"type":"text","content":"\n \nRNS Number : 5435M Chemring Group PLC 21 January 2016 \n\n \nNOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, JAPAN AND THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO. PLEASE SEE THE IMPORTANT NOTICE AT THE END OF THIS ANNOUNCEMENT \n \nTHIS ANNOUNCEMENT IS AN ADVERTISEMENT AND DOES NOT CONSTITUTE A PROSPECTUS OR PROSPECTUS EQUIVALENT DOCUMENT. NOTHING HEREIN SHALL CONSTITUTE AN OFFERING OF NEW SHARES. NOTHING IN THIS ANNOUNCEMENT SHOULD BE INTERPRETED AS A TERM OR CONDITION OF THE RIGHTS ISSUE. ANY DECISION TO PURCHASE, SUBSCRIBE FOR, OTHERWISE ACQUIRE, SELL OR OTHERWISE DISPOSE OF ANY NIL PAID RIGHTS, FULLY PAID RIGHTS OR NEW SHARES MUST BE MADE ONLY ON THE BASIS OF THE INFORMATION CONTAINED IN AND INCORPORATED BY REFERENCE INTO THE PROSPECTUS ONCE PUBLISHED. COPIES OF THE PROSPECTUS WILL, FOLLOWING PUBLICATION, BE AVAILABLE FROM THE REGISTERED OFFICE OF CHEMRING GROUP PLC AND ON ITS WEBSITE AT WWW.CHEMRING.CO.UK.\n \n21 January 2016\n \nChemring Group PLC (\"Chemring\" or the \"Company\")\n4 for 9 fully underwritten £80.8 million Rights Issue\nFurther to the announcement on 26 October 2015, the Board of Chemring Group PLC today announces a fully underwritten rights issue to raise gross proceeds of approximately £80.8 million to reduce its indebtedness. Chemring's full year results for the financial year ended 31 October 2015 have also been released today in a separate announcement.\nReasons for the Rights Issue and use of proceeds:\n \n· The Rights Issue is being pursued in order to assist the Group with reducing its indebtedness thereby enabling additional time and resources to be made available for further operational improvement and adequate investment in fully capturing the longer term growth opportunities available to the Group. \n· US Noteholders and the Group's banking syndicates have provided waivers and variations to amend the operation of the relevant covenants to ensure the Group remains in compliance with its Existing Finance Agreements; these amendments only serve as a short-term solution that would not fundamentally address the Group's balance sheet and capitalisatio...