Business
Fully Underwritten Capital Raising of up to £100m
Fully Underwritten Capital Raising of up to £100m.
About this update from Costain Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 6950F\n Costain Group PLC\n 11 March 2020\n \n \n \n \n 11 MARCH 2020\n \n \n \n \n \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014.\n \n \n \n \n \n THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SWITZERLAND, NEW ZEALAND, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD BREACH ANY APPLICABLE LAW OR REGULATION. PLEASE SEE THE IMPORTANT NOTICE AT THE END OF THIS ANNOUNCEMENT.\n \n \n \n \n \n Costain Group PLC\n \n \n (\n \"\n Costain\n \"\n or the \n \"\n Group\n \"\n or the \n \"\n Company\n \"\n )\n \n \n \n \n \n Fully Underwritten Capital Raising of up to £100 million\n \n \n \n \n \n \n \n \n Costain today announces:\n \n \n \n \n \n · \n A proposed new equity capital raising of up to £100 million (the \"Capital Raising\") in the coming weeks;\n \n \n · \n The Capital Raising has been fully underwritten by HSBC, Investec and Liberum on a standby basis;\n \n \n · \n An agreement with the Company's lenders to extend its existing bank facilities from June 2022 to September 2023, conditional on the completion of the Capital Raising;\n \n \n · \n Agreement with the Costain Pension Trustee on an updated recovery plan; and\n \n \n · \n An update on the Group's dividend policy.\n \n \n \n \n \n \n Update on Costain\n \n \n '\n \n \n s performance\n \n \n \n \n \n \n Costain has today separately announced its full year results for the year ended 31 December 2019. In summary:\n \n \n \n \n \n · \n \n Underlying operating profit of £17.9 million\n \n (2018: £52.5 million): in line with its revised expectations as set out in the trading update on 12 December 2019; the reduction in the year reflecting previously announced contract delays, a contract cancellation and the impact of the A465 contract arbitration outcome. \n \n \n · \n \n Continued strong momentum in securing new work\n \n : £1.7 billion of new contract awards and extensions to existing contracts secured during the year, with the order book, as at 31 December 2019, standing at £4.2 billion.\n \n \n · \n \n New Leading Edge str...