Company sells 165 million shares at 11p each to fund debt repayment
By Devika Patel
Knoxville, Tenn., May 20 - Interbulk Group plc said it plans to sell £18.15 million of stock to Sinotrans (HK) Logistics Ltd. in a private placement.
The company will sell 165 million ordinary shares at 11p each, which is a 183.51% premium to the closing price of 3.88p on May 19.
Proceeds will be used to repay about half of the most expensive tranche of the company's debt, which carries a bank interest margin of Libor plus 120 basis points.
Interbulk also said it has revised its banking facilities with the Bank of Scotland, which includes a reclassification of £5.1 million of existing mezzanine debt to a term B loan and several other improvements. The debt repayment and revisions to the banking facilities will have a significant positive impact on both the company's leverage, reducing net debt by about 16%, and its cost of debt, achieving an annualized reduction in interest expense of about £2.8 million.
The provider of intermodal logistics solutions to the chemical, polymer, food and mineral industries is based in Glasgow, Scotland.
| Issuer: | Interbulk Group plc
|
| Issue: | Ordinary shares
|
| Amount: | £18.15 million
|
| Shares: | 165 million
|
| Price: | 11p
|
| Warrants: | No
|
| Investor: | Sinotrans (HK) Logistics Ltd.
|
| Pricing date: | May 20
|
| Stock symbol: | London: INB
|
| Stock price: | 3.88p at close May 19
|
| Market capitalization: | £12.87 million
|
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