Cordiant Announces Rights Issue To Raise £127m

Cordiant has today announced details of its promised rights issue, which will raise £126.6 million. Shareholders are being offered a one for one rights issue at 60p per share. The proceeds will go towards reducing the Group’s borrowings, which are over £220 million.

The company has also announced new banking facilities worth £163 million, which are pegged at 1.5% above LIBOR.

Bob Seelert, Chief Executive, said, “The rights issue and the new banking facilities provide a solid financial base for the Group’s future by reducing substantially its gearing and cost of borrowings.”

The group’s statement says that in terms of improving financial stability, “the need for improvement is particularly apparent in the Group’s operations in the United States.”