Financial News

LONDON (ShareCast) - Intermediate Capital Group (LSE: ICP.L - news) (ICG), a leading investor in and manager of buyout debt, today announced a fully underwritten 7 for 2 rights issue to raise £351m.

The group will issue 302,193,703 new shares at 121 pence each, a 39% discount to the theoretical ex-rights price based on the closing price of 490 pence yesterday.

ICG said the cash call will allow it to capitalise on the investment opportunities in the primary and secondary market for buyout capital, as well as participate in the refinancing of existing buyout transactions emerging from the current market environment.

In addition, and subject to the completion of the rights issue, ICG has also negotiated the extension of the maturity of a further £395m of its bank debt, in addition to the £150m extension until 2013 announced on 2 June.

"The extraordinary state of the credit markets, the absence of liquidity in the banking sector and changes in the competitive landscape have provided ICG with significant opportunities to invest at attractive prices in the primary and secondary markets for buyout capital," said managing director Tom Attwood.

"The rights issue proceeds and the company's undrawn debt facilities, along with its third party funds, will provide ICG with substantial resources to take advantage of the opportunities resulting from the dislocation in the market."

Last month, the group said it was "disappointed" to post a loss for the year as net provisions surged. Pre-tax losses came in at £67m against £229.5m profit last year due to net provisions of £273m - £266m of gross provisions for portfolio companies, £36m of provisions for equity stakes in CDOs and £29m recoveries.