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Amid felling asset values and public-sector tenant departures, the London-listed property company will raise cash through a convertible bond issue to pay back its creditor bank
Exactly one year ago, London-listed Mapeley was subject to a £450m (euro479. 5m) historic takeover bid by US hedge fund and majority shareholder, Fortress Investments. The offer, at around £19 a share, collapsed, possibly as a result of US economic woes. As Mapeley enters 2009, it is indebted to Deutsche Bank for a total of around £60m (euro64m). The debt is due in April.
To get around this, the company is raising capital through a £45m convertible bond issue. The plan, which was first announced by Mapeley on Christmas Eve, was taken up by Fortress, after 95% of shareholders voted in favour last month.
The company, which is majority-owned by US investment group Fortress, said just before Christmas that it needed funds for repaying a £60m loan from Deutsche Bank due in April as well as for general investment purposes. The bond pays 20% annual interest. Shares...