By Christian Moess Laursen
XP Power said it aims to raise funds to improve its capital position through a premium share placing and retail offer, and that it has agreed to a new covenant deal with its lenders.
The power-supply company said late Monday that it intends to raise 43.9 million pounds ($54.4 million) by a placing of shares at a fixed price of 1,150 pence each.
In addition, it plans to issue a retail offer for subscription of shares up to GBP1.5 million at the same price as the share placing.
The price represents a premium of 6.1% to the closing price on Friday.
The funds–totaling GBP45.4 million–will be used to reduce net debt, improve the company’s liquidity position, refinance capital investments and continue to invest in research and development, it said.
Additionally, the company said it has reached an agreement with banks to amend the covenant of its $255 million revolving credit facility.
Last month, the company said it was in talks with banks to amend its future covenant requirements and had begun a cost-reducing program, which include job cuts, expected save GBP8 million-GBP10 million for fiscal 2024.
Write to Christian Moess Laursen at [email protected]
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