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Law firm Freehills advises on AWA capital raising

Law firm Freehills advises on AWA capital raising

Law firm Freehills is advising agribusiness AWB Limited on its $459 million capital raising, announced yesterday. _x000D_

Law firm Freehills is advising agribusiness AWB Limited on its $459 million capital raising, announced yesterday. 


AWB plans to raise the funds through an issue of new shares in an effort to strengthen the company's balance sheet and provide some flexibility through the subsequent reduction in net debt. 


The offer is structured as a 1 for 1 accelerated non-renounceable entitlement offer and placement. AWB will offer the new shares at $1 each, a 31 per cent discount to Tuesday's closing price of $1.445, the last before a trading halt. 


Tim McEwen lead the Freehills team, supported by senior associate Amy Goble and lawyer Cecilia Mehl. 


"This capital raising was very important for AWB and will position AWB favourably going forward and enhance its future strategic options. It was a pleasure to work closely with a strong management team to achieve a great result for the company," said McEwen. 


The capital raising announcement comes as the company also warns of loss in the year ending 30 September. 


"[The announcement] will fundamentally reposition the company's business sheet for this journey," said AWB managing director Gordon Davis. 


Company guidance is for a net loss this fiscal year in a range of $228m to $259m, swinging from a profit last fiscal year of $64.3 million. 

The company cited a $120m impairment charge against AWB's Landmark Financial Services unit, losses on significant or one-time items in a range of $34m-$36m, and a loss in a range of $149m-$171m on discontinued operations, for the loss. 


Freehills' capital markets team advised on a series of recent high profile placements, including by Ten Network, Lend Lease, CFS Retail Property Trust, Transfield Services, and the $2 billion placement by the Commonwealth Bank. 




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