21/05/2009 - 09:00

Aspen secures $41m from capital raising

21/05/2009 - 09:00

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Property developer Aspen Group has locked in $41 million from its planned $82.4 million capital raising, with the institutional component oversubscribed.

Property developer Aspen Group has locked in $41 million from its planned $82.4 million capital raising, with the institutional component oversubscribed.

Shares issued under the institutional component were priced at 30 cents each, a discount to the company's last traded price of 33.5c at 10:15 AEST.

Earlier this week, Aspen announced it will raise more than $82 million with funds to secure better terms of a senior debt facility.

 

The announcement is below:

 

Aspen Group has today announced the successful completion of the institutional component ("Institutional Offer") of its accelerated non-renounceable pro rata offer ("Entitlement Offer") raising approximately $41 million at $0.30 per security.

The equity raising was announced to the market on 19 May 2009 and proceeds from the equity raising will strengthen the Group's balance sheet through application of funds to reduce debt, providing substantial headroom within the Group's senior debt facility.

The Entitlement Offer is fully underwritten by Euroz Securities Limited.

Eligible institutional securityholders took up more than 98% of the entitlement securities available to them as part of the Institutional Offer. The shortfall was well oversubscribed based on additional demand from existing eligible institutional securityholders and new institutional investors.

New securities issued under the Institutional Offer will be allotted and commence trading on 3 June 2009 and will rank equally with existing securities on issue.

Managing Director Angelo Del Borrello said the Aspen Group Board was delighted with the very strong level of support from both existing and new securityholders.

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