Webjet raises $346m in capital
DLA Piper has advised Webjet Limited on a $346 million equity raising.
Firms: DLA Piper (Webjet Limited)
Deal: Global law firm DLA Piper has advised Webjet Limited (ASX: WEB) on its $346 million equity raising.
The offer comprises an institutional placement and accelerated pro-rata, non-renounceable entitlement offer.
The offer is fully underwritten by Goldman Sachs Australia Pty Limited, Credit Suisse (Australia) Limited and Ord Minnett Limited.
Value: $346 million.
Area: Banking & finance.
Key players: DLA Piper’s team was led by corporate partners Joel Cox and David Ryan and banking and finance partner David Lyons, with special counsel Jennifer Whincup and Kelly Morrison, solicitors Simon Berkey, Cassian Ho and Ellie Harding and graduate Charlie Lian.
Deal significance: The institutional placement and institutional component of the entitlement offer have completed and raised approximately $231 million from the subscriptions for new fully paid ordinary shares in Webjet (“new shares”) at a price of $1.70 per new share.
Mr Ryan, DLA Piper’s head of equity capital markets, said: “The coronavirus health crisis and associated government travel restrictions have resulted in a significant reduction in global travel activity.”
“The proceeds of this equity raise will be used to strengthen Webjet’s balance sheet during this time. This was the first placement and entitlement offer to utilise ASX’s class waiver relief which was issued by the ASX on 31 March 2020 to support listed companies during the COVID-19 pandemic.
“This is one of many examples where DLA Piper is able to successfully deliver for our clients in these unprecedented market conditions.”
The institutional component of the entitlement offer was well supported, with a take-up rate from eligible institutional shareholders of approximately 90 per cent.
The transaction was completed in difficult market conditions for Webjet, given the considerable impact on its business from COVID-19-related travel restrictions.
In addition to advising on equity capital market aspects of the transaction, DLA Piper’s banking and finance team advised on implications of COVID-19 travel restrictions for Webjet’s banking facilities and on alternative financing options.