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  • Emeco has completed the $111 million institutional component of its non-renounceable entitlement offer to raise up to $149 million
  • The $149 million raise was announced yesterday, with Emeco claiming the funds would help to reduce debt and improve its financial position
  • Pleasingly, the institutional component was strongly supported by existing institutional shareholders, who took up around 94 per cent of their entitlements
  • New shares are expected to be allocated on Wednesday, September 2 and will begin trading normally on the same day
  • Additionally, Emeco hopes to raise the remaining $38 million through a retail entitlement offer
  • Emeco’s shares have fell 6.92 per cent in the red to trade for 90.8 cents

Emeco (EHL) has completed the institutional component of its 1-for-2.1 pro-rata, accelerated non-renounceable entitlement offer.

The $149 million offer was announced just yesterday with Emeco claiming the funds would go towards reducing its outstanding secured notes from $442 million to $250 million.

“The complete capital structure solution will see our gross debt reduced significantly and our 2022 refinancing task eliminated, setting Emeco up for future success,” Managing Director and CEO Ian Testrow said.

Importantly, the maturity date of the remaining notes has been extended to 2024. After the transaction, Emeco will have $153 million of total available liquidity. These changes allow the company to focus on its operations and grow its business.

Institutional entitlement offer

The mining plant and equipment provider raised roughly $111 million through issuing 131 million new shares at 85 cents each.

The institutional component was strongly supported by existing institutional shareholders who took up around 94 per cent of their entitlements.

“It is very pleasing to see extremely strong support from our shareholders in response to our comprehensive package of capital structure initiatives,” Ian added.

New shares under the institutional component will rank equally with existing shares on issue and are expected to be allocated on Wednesday, September 2. The new shares will commence trading normally on the same day.

Retail entitlement offer

In addition to the $111 million, Emeco is hoping to raise another $38 million through the issue of around 44 million new shares at 85 cents each.

The retail component will open on Monday, August 31, will close on Tuesday, September 15 and will be settled on the following Monday.

Emeco’s shares have fallen 6.92 per cent in the red to trade for 90.8 cents each at 1:09 pm AEST.

EHL by the numbers
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