Tabcorp raises US$265m from entitlement offer

The Australian company is looking to obtain US$429.6 million to pay existing debt facilities and strenghten its balance sheet.

Australia.- Lotteries and gaming operator Tabcorp Holdings has raised AU$371 million (US$265.7 million) from the institutional component of an entitlement offer launched last week.

The company said it aimed to obtain approximately AU$600 million (US$429.6 million) to pay down existing bank debt facilities and strengthen Tabcorp’s balance sheet.

Tabcorp chairman, Paula Dwyer, said: “We thank our institutional shareholders for their participation in the entitlement offer which attracted approximately 97% take-up. Those institutional shareholders who did not take-up their entitlements will receive AU$0.45 (US$0.32) for each right not taken up as a result of the shortfall bookbuild.”

Eligible shareholders were invited to subscribe for 1 new Tabcorp ordinary share for every 11 existing ordinary shares at a price of AU$3.25 (US$2.32) per unit. The offer ended on August 20, when the company reached AU$371 million (US$265.7 million) for close to 114 million new shares.

Now through the retail component of the entitlement offer, the company expects to raise an additional AU$229 million (US$163.9 million) at the same price of the insitutional shares. This offer will be made to elegible shareholders from August 28 to September 10.