Stobart Group has launched an offering through its wholly owned subsidiary Stobart Finance of up to £57.3 million of secured guaranteed exchangeable bonds, which the company says is intended to support its growth plans.
The bonds will have a five year maturity and will be unconditionally and irrevocably guaranteed by the company. They will also be exchangeable into ordinary shares of 1 penny each in the capital of Eddie Stobart Logistics.
The bonds were offered via an accelerated book-building process through a private placement to institutional investors outside the US, Canada, Australia, South Africa and Japan.
Chief executive Warwick Brady said: "Stobart Group is focused on accelerating the growth in its core aviation and energy divisions. These require further investment in order to optimise shareholder returns on a sustainable basis.
"The group has reviewed its capital requirements and the most effective use of its assets and investments in order to achieve this aim. The issuance of this bond allows Stobart Group to realise the value of its interest in Eddie Stobart Logistics while protecting the long-term interests of shareholders."
Stifel Nicolaus Europe is acting as sole bookrunner. Orbit Investment Securities Services is acting as selling agent.