International Financing Review Asia April 4 2020 27COUNTRY REPORT AUSTRALIAeach, or a 7.9% discount to the pre-deal
close of A$11.56 on March 25.
The deal drew support from existing
shareholders, as well as domestic and
global investors.
Additionally, IDP is proposing a A$15m
share purchase plan at the same price from
April 14 to May 7.
Proceeds will be used to enhance balance
sheet strength and financial flexibility.
IDP’s main activities – English-language
testing for certifications such as IELTS
and international student placements –
have been affected by travel restrictions
and government-mandated lockdowns
worldwide, including in India, IDP’s largest
testing market.
IDP has deferred payment of the A$41m
H1 FY2020 dividend to September.
Macquarie Capital was the bookrunner of
the placement.
Meanwhile IDP’s existing lenders are
providing the company with a A$150m loan
to lift its liquidity position, the company
said in a filing last Wednesday. The 15-
month working capital facility will add to
another A$25m borrowing that remains
undrawn.› KATHMANDU TAPS NZ$207M FUNDRAISINGNew Zealand specialist outdoor gear retailer
KATHMANDU HOLDINGS has raised NZ$154m
(US$91m) as part of a NZ$207m equity
raising exercise to strengthen its balance
sheet amid the coronavirus pandemic.
Both a NZ$30m placement and a 1.2-for-1
institutional entitlement offer received
strong support from existing institutional
investors, with a 96% take-up in the
institutional rights offer.
Briscoe Group, Kathmandu’s largest
shareholder with a 16.3% stake, said in a
separate filing it would not participate inthe equity raising as its priority is its own
business given the current uncertainty.
The retail entitlement offer will take
place from April 6 to April 17.
The company set aside 414m new shares
for both offers at NZ$0.50 each, or a 51%
discount to the last close of NZ$1.02 on
March 30. The shares resumed trading last
Thursday and ended the day at NZ$0.81,
down 27.7%. The stock is down 75% in the
year so far.
On successful completion, the equity
raising will boost Kathmandu’s total
liquidity to NZ$315m, the company said in
a filing.
It confirmed it will suspend its dividend,
including the interim dividend for the first
half, until trading conditions improve.
Kathmandu’s results for the FY2020 first
half ended January 31 show underlying
Ebitda climbed 47% to NZ$40.5m on sales of
NZ$363.7m.
Chief executive Xavier Simonet said
the board is taking pre-emptive action
“to ensure our group remains strongly
capitalised during the current market
uncertainties.”
Proceeds from the equity raising will be
used to pay down debt and strengthen the
balance sheet.
Craigs Investment Partners, Credit Suisse,
Forsyth Barr and Jarden Securities are the joint
lead managers.
Meanwhile Kathmandu’s lenders have
relaxed and waived certain covenants
subject to the retailer completing an equity
funding of at least NZ$150m.
Kathmandu has won covenant waivers
for the periods ending July 31 2020 and
January 31 2021, and a relaxation of certain
covenants for the period ending July 31
2021, according to Refinitiv LPC.
However, Kathmandu acknowledged
that it still faces the risk that the impact of
Covid-19 is worse than anticipated, possiblyresulting in non-compliance with covenants
for the period ending July 31 2021, or
otherwise triggering an event of default,
and the company being unable to obtain
further support from banks.› NEXTDC RAISES FUNDS FOR GROWTHData centre operator NEXTDC has raised
A$672m (US$407m) from an institutional
placement to fund a new facility in Sydney.
NEXTDC shares opened up 5.5% to a
record high of A$9.69 last Friday. The stock
is up 44% so far this year.
About 86.1m shares, or 25% of shares
on issue, were sold at A$7.80 each,
representing a 15% discount to the pre-deal
close.
The Brisbane-based company is also
proposing an uncapped share placement
plan for eligible shareholders to subscribe
from April 14-30.
NEXTDC CEO Craig Scroggie said there
has been significant demand for data centre
services during the Covid-19 pandemic,
which is driving its plan to expand capacity.
The company’s New South Wales
facilities have hit 70% capacity and it
expects to secure more contracts in the
near term.
It intends to use the proceeds to build a
new data centre facility in Sydney and for
other initiatives such as adding new hall
capacity or acquiring a new data centre site
for development.
Citigroup and Royal Bank of Canada are the
joint lead managers and bookrunners.› WEBJET DOES PLACEMENT, RIGHTS OFFERASX-listed online travel bookings service
WEBJET has raised A$231m (US$141m)
after upsizing a A$115m placement and
completing the institutional portion of a
A$346m entitlement offer.
The underwritten institutional placement
was increased by A$14m from the original
A$101m. It was oversubscribed with strong
demand from existing and new investors.
The 1-for-1 entitlement offer raised
about A$116m in the institutional tranche
with a take-up rate of 90% from eligible
shareholders.
Bain Capital has been allocated 14.7m
shares in the placement, or 6% of shares
outstanding after the deal’s completion,
representing A$25m at the offer price of
A$1.70 per share.
Bain Capital has also agreed to sub-
underwrite up to 10% of Webjet shares
outstanding through the retail entitlement
offer, depending on the take-up by eligible
retail shareholders.
The retail entitlement offer will open
from April 8 to April 21.Top bookrunners of Australian equity and
convertible offerings
1/1/20 – 31/3/20
Amount
Name Issues US$(m) %
1 UBS 6 1,534.4 25.2
2 Goldman Sachs 4 1,349.1 22.1
3 JP Morgan 5 1,009.7 16.6
4 Macquarie 2 681.8 11.2
5 Bofa Sec 1 367.1 6.0
6 Bell Financial 10 254.5 4.2
7 Canaccord Genuity 14 187.8 3.1
8 Euroz Sec 5 83.1 1.4
9 Berenberg 1 73.0 1.2
10 Argonaut 3 58.1 1.0
Total 129 6,099.2
*Market volume
“Standard Exclusion not applicable”
Proportional credit
Source: Refinitiv data SDC Code: AK1Top bookrunners of Australian equity
1/1/20 – 31/3/20
Amount
Name Issues US$(m) %
1 UBS 6 1,534.4 25.2
2 Goldman Sachs 4 1,349.1 22.2
3 JP Morgan 5 1,009.7 16.6
4 Macquarie 2 681.8 11.2
5 Bofa Sec 1 367.1 6.0
6 Bell Financial 10 254.5 4.2
7 Canaccord Genuity 14 187.8 3.1
8 Euroz Sec 5 83.1 1.4
9 Berenberg 1 73.0 1.2
10 Argonaut 3 58.1 1.0
Total 127 6,090.3
*Market volume
“Standard Exclusion not applicable”
Proportional credit
Source: Refinitiv data SDC Code: AK2B&RXQWU\LQGG