SPC Global, the Australia-based food-and-drinks group, has started its rights offer, a move drawn up to help lower the company’s debts.
The canned foods, dairy and juices supplier, which listed less than 18 months ago, is looking to bolster its balance sheet
In a stock-exchange filing today (22 May), SPC Global said it was looking to raise AS$97.1m (US$69.3m) before costs. Under the so-called entitlement offer, shareholders will be able to acquire one new share for every 0.1993 shares they already own. The offer will close on 2 June.
In an investor presentation last week, SPC Global’s management said the majority of the proceeds would be used to repay borrowings. “Proceeds from the equity raising will be used to strengthen SPC Global’s balance sheet, providing further financial flexibility and headroom to support the working capital requirements of SPC Global’s business strategy,” the presentation read. “The majority of the proceeds will be used to reduce the company’s outstanding senior bank debt to a level that reflects a more appropriate leverage position.” After the equity raising, SPC Global said its net debt, based on its position on 31 December 2025, would stand at A$38.7m on a pro-forma basis, down from A$138.7m. The company’s pro-form net debt/equity would be 21%, rather than 165.3%. In the first half of SPC Global’s financial year, six months that ran to the end of December, the group generated net sales revenue of A$171.5m, down 13.3%.