Company plans to raise £25.6m from share issue
Credit hire firm Helphire is planning to delist its shares from the official list of the London Stock Exchange and refinance its debt.
The company will relist on the stock exchange’s small-cap Alternative Investment Market (AIM).
Under the refinancing, Helphire plans to raise £25.6m from issuing new shares, which it will use to pay down £23m of its bank debt.
It will also do a debt-for-equity swap with its banks. It will issue 187.4 million shares to the banks, who will in return extinguish £64.6m of the debt Helphire owes them.
Helphire says the listing change and debt refinancing will improve shareholders’ position and strengthen the company’s trading position.
Helphire chairman Avril Palmer-Baunack said: “I am very pleased that we have been able to announce the refinancing, which completes the restructuring of Helphire.
The group is now performing well at the operating level and the refinancing of all of the group’s debt (other than asset finance) puts us in a strong position to consolidate and improve the group’s financial performance.
“We are grateful to the investors who have supported our fundraising and to our lenders for their constructive role in the Refinancing and we look forward to rewarding their commitment to the group.”
The news comes as Helphire posted improved results for the half-year to 30 December 2012.
The company made a profit before tax of £200,000, compared with a loss of £6m in the same period of 2011.
Adjusted operating profit was £3.1, compared with a loss of £700,000.
Earnings before interest, tax, depreciation and amortisation increased 39% to £8.5m from £6.1m.
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