CLAYTON Utz has advised labour hire company Skilled Group Ltd on its $71 million capital raising.
The client posted a first half loss and launched the capital raising to pay down debt and support a restructure aimed at turning the company around.
The company said its second half outlook is uncertain and will be determined by the speed of recovery from the Queensland floods, as well as the erratic activity in industrial sectors, on top on an ongoing company restructure.
Skilled Group reported a net loss of $2.3 million for the six months to 31 December, down from a net profit of $4.5 million for the same period the previous year.
The capital raising by way of any accelerated entitlement offer and placement. In addition to a $53 million entitlement offer, $18 million was raised through a placement in conjunction with the institutional component of the entitlement offer. The placement was added to the capital raising due to strong investor demand received in the institutional offer.
Clayton Utz Melbourne corporate partner Brendan Groves led the Clayton Utz team, which included lawyers Sachi Haga, Warrick Louey and Sarah Pfeiler. Senior corporate partner Rod Halstead also advised on the transaction.
The offer is fully underwritten by Goldman Sachs, whose legal advisers on the deal are Gilbert + Tobin. The funds raised will be used to reduce debt and debt servicing costs, and help position Skilled Group for further growth.
Groves said Clayton Utz was pleased to have worked alongside Skilled Group on this strategically significant transaction that will support its long-term growth objectives.