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Grainger raises cash
Posted on Friday, 14 February 2020 09:01
Grainger has revealed a placing that Zephyr, the M&A database published by Bureau van Dijk, shows is among the top ten capital increases announced by a UK company in 2020 to date.

The Newcastle upon Tyne-based private rental housing provider is raising GBP 186.70 million through the issue of 61.20 million new shares via an accelerated bookbuild conducted by JPMorgan.

At 305.00 pence apiece, the price represents a discount of 2.3 per cent to the close of 312.20 pence on 12th February, the last unaffected trading day prior to the announcement.

Including additional debt of GBP 120.00 million based on company's loan-to-value target range, this will generate aggregate funding capacity of a little over GBP 305.00 million.

Grainger noted this will help it accelerate its private rental sector (PRS) growth strategy by committing to a further GBP 246.00 million of new acquisitions into its secured pipeline.

It will bring forward an investment for four new schemes, three of which are in regional cities, delivering 1,160 new homes.

The GBP 305.00 million also provides headroom to pursue a further GBP 59.00 million of capacity to accelerate near-term schemes in the planning which currently stands at GBP 528.00 million.

Zephyr shows Grainger’s cash call is the sixth-largest capital increase by a UK company of the year so far, behind the likes of Pension Insurance, Nippon Active Value Fund, Sequoia Economic Infrastructure and Farfetch.com.

Globally, 1,118 such deals worth an aggregate USD 51.95 billion have been announced in 2020 to date.

The biggest features Delivery Hero of Germany issuing convertible bonds totalling USD 1.95 billion, which is followed by Ningbo Zhoushan Port’s sale of new shares to Ningbo Zhoushan Port Group and Shanghai International Port for USD 1.62 billion.

In all, nine capital increases each worth more than USD 1.00 billion have been announced so far this year.

© Zephus Ltd