National Express has agreed to issue 102,347,729 new ordinary shares (representing approximately 19.99 per cent of its current issued share capital) at a price of 230 pence per share, raising gross proceeds of approximately £235 million. Admission of the new shares is expected to take place on 11 May 2020.
The net proceeds from the placing will be used to strengthen National Express' balance sheet and, combined with newly increased lending facilities and the significant COVID-19 related management actions implemented across its businesses, will provide National Express with further liquidity, increased covenant headroom in future periods and enhanced resilience to manage the business through an extended period of uncertainty. In addition, the net proceeds of the placing will allow National Express to accelerate a reduction in gearing to within a new target range of 1.5 to 2.0 times and seek to take advantage of growth opportunities with new and existing customers in the current market. Bank of America Securities and HSBC are acting as joint bookrunners and joint global coordinators in connection with the placing.
The Ashurst team was led by corporate partners Tom Mercer and Simon Bullock, assisted by senior associate Maria McAlister and associate Kseniia Samokhina. Consultant Jeff Sultoon also advised. Partner Stuart Rubin and counsel Ethan Perry advised on US securities law aspects of the transaction. Partner Nicholas Gardner advised on UK tax matters, assisted by associate Laura Burt. Mourant Ozannes acted as Jersey counsel in connection with the 'cash box' structuring of the transaction.
