Business
Rights Issue
Rights Issue.
About this update from Marshalls Plc
[{"type":"text","content":"\n RNS Number : 1444S Marshalls PLC 13 May 2009 \n \n13 May 2009\n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA, MALTA, NEW ZEALAND OR ANY OTHER JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL.\n\n\nMarshalls plc announces a fully underwritten Rights Issue to raise net proceeds of approximately £34 million\n\nThe Board of Marshalls today announces a fully underwritten 2 for 5 Rights Issue to raise proceeds of approximately £34.2 million, net of expenses, through the issue of 56,272,501 New Ordinary Shares. The Rights Issue is subject to approval by Shareholders at an Extraordinary General Meeting expected to be held on or around 29 May 2009. The Rights Issue has been fully underwritten by Citi and Numis.\n\nMike Davies, Chairman of Marshalls, said 'Against the background of an uncertain economic environment, the Board believes the Rights Issue will provide a more conservative and flexible capital structure by reducing the Group's financial indebtedness and providing increased headroom on its lending covenants. The Board further believes that the improved capital structure will create a stronger position from which to develop the Group so as to ensure that it is well placed to take advantage of the recovery in economic activity when it occurs.'\n\nHighlights\n\n\n\n2 for 5 Rights Issue of 56,272,501 New Ordinary Shares at a price of 65 pence per New Ordinary Share\n\n\nThe fundraising will reduce the Group's financial indebtedness and provide a more conservative capital structure for the current environment as well as increased headroom on financial covenants under its facilities\n\n\nThis will provide the Group with flexibility from which to take advantage of strategic and value-enhancing organic development opportunities and potential acquisition opportunities\n\n\nThe improved capital structure will create a stronger position from which to develop the Group so as to ensure that it is well placed to take advantage of the recovery in econ...