It’s being reported this morning that Countrywide will seek new investment of over £100m, probably in the next few days.
The Sunday Telegraph says the troubled agency group, which issued a profits warning two weeks ago, is planning a placing or rights issue to help tackle its debts.
The Telegraph says: “The funds will be used to bankroll an attempt to revive Countrywide and cut its debt burden of about £200m by at least half. Bankers were this weekend finalising the details to go to the market as soon as Thursday, although sources cautioned that the timetable could change.
“The decision to seek a lifeline from shareholders comes after plans to raise a bond to replace a revolving credit facility with its current lenders proved unsuccessful, sources have said.
“[Investment bank] Jefferies have been appointed to oversee the fundraising, while the investment bank Rothschild will handle a potential restructuring if the cash call falls flat. Countrywide’s largest investor Oaktree Capital, which owns just over 30pc of the business, is understood to be supportive of the fundraising.”
Countrywide is scheduled to make its next trading statement this coming Thursday.
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