Kathmandu in $NZ207m raising

Sherry Yang, on vacation from Taiwan poses for a photo at the Kathmandu store in Albert Street, Brisbane CITY 26TH SEPTEMBER 2017 Kathmandu have released their full year results today. Photo aap/Ric Frearson

Kathmandu is raising $NZ207m at NZ50c per share. The offer comprises a $NZ30m institutional placement and a $NZ177m 1.2 for one entitlement offer.

The raising is at a 51 per cent discount to Kathmandu’s last closing share price of $NZ1.02.

The proceeds of the raise will be used to pay down debt and provide liquidity and funding for medium-term operating requirements, including estimated redundancy costs.

Working on the raise are Credit Suisse, Jarden, Crags and Forsyth Barr.

The development comes as the Christchurch-based business that is listed in Australia and New Zealand wrestles with the suspension of trade in business here and across the Tasman, with stores shut in Australia and New Zealand in a complete coronavirus lockdown.

Kathmandu major shareholder Briscoe Group, holds about 16 per cent of the stock and previously attempted to embark on a takeover of the retailer.

Kathmandu’s market value is $289m, falling from about $870m last month.

At December, the group’s net debt of $NZ228.8m was 1.5 times its earnings before interest, tax, depreciation and amortisation.

The group last year tapped the market for $NZ177m to fund the $350m acquisition of surf wear brand Rip Curl through Credit Suisse, Jarden and Deutsche Craigs.