Company news: Emeco
Australian Equities Portfolio
Emeco announced it will raise $149m through a non-renounceable rights issue. Proceeds will be used to pay down existing debt, extend the tenor of remaining debt (+2 years) and extend an existing credit facility.
The transaction significantly de-risks the business’ balance sheet and therefore increases the value of the underlying business
We participated on clients’ behalves (which adds a further 1.8% weight to Emeco in the Australian Equities Portfolio) – to approximately 5.5%.
Clients have had suffered no dilution as the capital raise was structured solely as a rights issue. We have held cash in anticipation of equity raisings similar to this.