Intermediate to ask shareholders for £82m
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Intermediate Capital Group, the mezzanine capital provider, yesterday announced plans to raise about £82m from its shareholders in a placing and open offer following a 23 per cent rise in interim pre-tax profits.
The company said its offer to qualifying shareholders would enable ICG "to reduce its gearing and further increase its borrowing capacity".
The price for the proposed two for 13 offer is set at 915p a share, a discount of just 8.7 per cent to yesterday's opening price. ICG reported a rise in pre-tax profits for the year to the end of July of £5.9m, to £32.1m, as the European mezzanine loan market, which principally involves financing between start-up and IPO, has remained relatively robust.
The company's core income, which comprises net interest and fund management fees, rose by 31 per cent to £28.4m and capital gains were down from £16.3m last year to £15.9m this time. The portfolio of loans is diversified across 83 companies spread over 28 sectors and 11 countries and overall it has risen by 18 per cent over the past 12 months, to hit £1bn at the year end.
The chairman, John Manser, said this "strong growth in the buyout market throughout Western Europe" and the increased size of those buyouts, which are ICG's principal source of business, were key factors in the improved results although he did not expect the demand to continue "at quite the same pace". The company has also managed to benefit from the banks' caution in recent depressed economic conditions.
The company also announced the completion of a financing package for the takeover by CVC Capital Partners of the spread-betting company IG Index. ICG will provide £60m as part of the £143m deal that was completed last month.
Shares in the company rose 22.5p to 1,025p following the announcements.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments