oOh!Media poised for raising

The advertising billboard and signage operator hopes to secure $39m via a placement and $128m via an entitlement offer.

oOh!media’s major shareholder HMI has hired advisory firm Luminis Partners to assist with its recapitalisation as the company looks to lock in $167m of fresh equity Thursday.

HMI owns about 18 per cent of the company and will be given a boardroom seat in return for supporting the raise.

It comes as investors prepare to buy shares for 53c as part of the raise, which is being undertaken by Macquarie Capital.

The advertising billboard and signage operator hopes to secure $39m via a placement and $128m via an entitlement offer.

Its shares last traded at 84c and the raise is at a 37 per cent discount to that price.

The media group, which operates billboards and signs in public places, has been in a trading halt since last week as it searches for ways to boost its equity levels while wrestling with a net debt pile of $354.5m.

Terms were sent out to investors for a raise, which was supposed to unfold via a bookbuild on Monday.

However, despite doubts that the deal would be finalised, oOh!Media is expected to successfully tap the market on Thursday.

It also comes as Luminis also works with Flight Centre on a potential equity raising, while Macquarie is also understood to be close to the listed travel agency.

Flight Centre has stood down 3800 Australian workers due to the coronavirus crisis, which has halted or slowed international and domestic travel.

The travel firm currently has a $1bn market value and $10m of net debt, and the thinking is that it would have stronger prospects of a government bailout than Webjet due to its sheer size and shopping centre presence, being seen more as an essential service.

In January, Flight Centre had a $4.5bn market value with a $44.40 share price versus its last traded price of $9.91 and $1bn market value.

Luminis is also helping longstanding client Southern Cross Media Group assess options, which includes potential efforts to raise debt or equity.

Southern Cross, which has seen its market value crash to $127m from $653m last month, is believed to be assessing all options with respect to embarking on a recapitalisation, including moves to tap the market or obtain more debt.

On Wednesday, its shares went from a trading halt into voluntary suspension. Its current net debt pile is $330.5m.