COMPANY PRESS RELEASE: Commenting on the refinancing of the Company, Thus’s Chairman, Charles Berry, said:
I am delighted to announce that we have reached agreement in principle regarding the future capital structure of Thus. Thus has developed a track record for delivering good results in a difficult market. The proposals announced today will address any concerns with the Company’s ongoing funding situation that may have affected market and customer perceptions about the Company. Following the introduction of the bank facility and the completion of the open offer Thus would have a strong balance sheet relative to its competitors and Thus believes that it would be fully funded through to cashflow positive.
Chief Executive, William Allan, continued:
Thus has produced five consecutive quarters of strong growth, meeting or exceeding market expectations. Our core infrastructure is complete, we have a strong management team and our services continue to be well received in our target markets. Today’s announcements are designed to position us strongly for further growth and to deliver on our strategy of maximising shareholder value through the provision of voice, data, Internet and contact centre services throughout the UK.
Thus today announces that Thus and ScottishPower have reached agreement in principle for ScottishPower to exchange its current loan to Thus for additional equity in Thus. In addition, Thus announces that it has agreed the terms of an underwritten £90 million bank facility with The Royal Bank of Scotland plc, TD Securities and Société Générale.
Subject to final agreement, Thus proposes to announce an open offer of new ordinary shares in Thus to raise £275 million before expenses at 48p per share. All drawings by Thus (expected to amount to approximately £260 million by completion of the open offer) under ScottishPower’s £320 million loan facility would then be repaid by Thus and the ScottishPower loan facility would be cancelled.