By Jaime Llinares Taboada
nmcn PLC said Monday that it has agreed a renegotiation of its debt after securing a 14 million pound ($19.3 million) equity subscription and a GBP10.0 million convertible bridging loan with new investors.
The U.K. engineering-and-construction company said it has agreed to issue 70 million shares at a price of 20 pence each to new investors including Svella PLC--which will buy shares for up to GBP7.4 million. In addition, the company intends to raise up to GBP5.0 million via open offer of up to 25 million shares, it said.
The issue price represents a 89% discount to the 197.5 pence closing price Friday.
Svella has provided GBP10.0 million via a bridging loan convertible at a price of 20 pence a share, nmcn said.
As part of the transaction, nmcn has reached an agreement with Lloyds Bank PLC to renegotiate its debt facilities, it said. The lender has agreed to extend the existing GBP12.2 million uncommitted overdraft to Sept. 30, and to provide a GBP5 million revolving credit facility and a GBP2.5 million term loan, the company said
"We are pleased to have concluded this arrangement with Svella and other stakeholders, which will fully re-capitalise the company, providing a platform for sustainable long term value creation in our chosen markets," Chairman Ian Elliott said.
Write to Jaime Llinares Taboada at email@example.com; @JaimeLlinaresT
(END) Dow Jones Newswires