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(Alliance News) - SSP Group PLC said late Wednesday, in response to media reports, that it is evaluating the merits of several funding options in both debt and equity, that would further strengthen its balance sheet.
Earlier Wednesday, the Financial Times reported that the London-based operator of food and beverage outlets in travel locations is planning to raise up to GBP500 million through a rights issue from shareholders, according to two sources close to the company.
ft.com/content/b2211446-2f2d-45c3-aaf3-f6d1f379674c
SPP said that as at September 30, 2020, it had cash and undrawn available facilities of around GBP520 million. Included within this amount is GBP300 million from the Bank of England Covid Corporate Financing Facility, which has been drawn down in full during the month of February.
The recent draw down is solely due to the scheme closing for further drawings from March onwards.
"Whilst SSP is confident in the medium-term recovery of the travel market, there remains significant uncertainty with regard to Covid-19 and associated travel restrictions. In that context, the group continues to evaluate the merits of a range of funding options, both debt and equity, that would further strengthen its balance sheet," SSP stated.
Shares in SSP closed 5.1% lower at 317.00 pence on Wednesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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