Whitbread successfully completes £1b rights issue

Premier Inn owner Whitbread announced earlier today that it has successfully completed a £1b rights issue to ensure it emerges from the Covid-19 pandemic "with a strong balance sheet and in the best position possible".

When the company announced the move last month, it said the purpose was to return its balance sheet to a position of strength, to allow it to invest with confidence and flexibility, and provide liquidity headroom in the event of a Covid-19 resurgence.

Today the group announced that the ‘one for two rights issue' of 67,277,416 new ordinary shares at 1,500 pence per share saw take-up of approximately 91.4%, following which joint bookrunners JP Morgan Cazenove and Morgan Stanley procured acquirers for the remaining 5,824,869 new ordinary shares earlier this afternoon.

Whitbread is the latest firm to fundraise to see it through the coronavirus crisis; foodservice firm Compass completed a successful £2b equity raise earlier this week and CH&Co has also undergone a refinancing and fundraise.

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