Ezra to raise $405.2m in bid to reduce massive debt

Via a rights and convertible bonds issue.

Ezra will raise $405.2m (US$300m) via a rights issue and the issue of convertible bonds in a bid to reduce its high gearing.

Ezra's gearing stood at 116.4% as of early April, according to a report by KGI Fraser.

The group is proposing a renounceable rights issue of up to 2 billion new ordinary shares, which will be offered on the basis of up to 200 rights shares for every 100 existing ordinary shares.

The group is expected to raise approximately $202.5m (US$150m) from the rights issue which will be primarily applied to the redemption of the $225 million Fixed Rate Notes

Ezra intends to raise approximately S$200 million (approximately US$150 million) of
convertible bonds, which will be used for other refinancing activities.