Speedy Hire opts for £100m rights issue

28th May 2009 08:03

Speedy Hire said it plans to raise net proceeds of around £100m in a 9-1 fully underwritten right issue. The group is issuing 458,658,900 new ordinary shares at 23p each, an 86% discount to the closing price of 176p on 27 May 2009.Chairman David Wallis said, "The Rights Issue will strengthen the group's balance sheet during an unprecedented period of challenging trading and limited visibility over future revenue streams.""By reducing leverage we will have greater operational and financial flexibility to trade through uncertain economic conditions. Combined with the recently announced covenant amendments and amended bank facility agreement this Rights Issue will allow Speedy Hire to emerge from the current market conditions in a position of greater strength," Speedy Hire said.The rights issue will need to be approved by shareholders at an extraordinary meeting at the end of June.