Waterford shares’ deal realises €38.5m
The company said yesterday that 88% of shareholders took up their right to buy more shares in the company at a price of 18c, which was a 38% discount on the share price of 29c when the rights issue was announced in November. Waterford shares fell since then and were trading at 23c yesterday.
Waterford said more than €188m new shares were sold under the rights issue, which allowed shareholders to buy three new shares for every 11 they already held. The company completed the fundraising by selling the shares not taken up by 12% of shareholders through a placement by Davy stockbrokers. These shares were sold at 21c and brought in over €5m of the total. The money raised will be used to repay some of Waterford’s significant debt burden, which stands at approximately €350 million. The company moved to restructure its debt package in late 2003 and also issued a €166m seven-year bond. This extended the group’s debt over a longer period and had a positive impact on cashflow by spreading interest payments.
