EDreams shares plummeted more than 15% in the early stages of this Thursday's session after completing its share capital increase and obtain 75 million euros to accelerate its deleveraging and reinforce its strategy growth. Specifically, the company's securities were left 15.19% after 9.30 am and were exchanged at a price of 7.93 euros.
The issue price (nominal value and issue premium) of the new shares has been set at 8.50 euros per share, which is a 9% discount compared to the 9.35 euros at which it closed yesterday on the stock market.
The total effective amount of the capital increase will be 75 million euros with the issuance of 8,823,529 ordinary shares of the firm, with a nominal value of 0.10 euros each, belonging to the same class and series as the existing shares. currently in circulation.
The new shares represent approximately 7.43% of the company's capital stock before the capital increase and approximately 6.91% of the capital stock afterwards.
eDreams explained that this additional capital will allow it to "further" strengthen its own resources to support its strategic expansion plans, while highlighting that the business has achieved "significant" growth over the last few quarters, achieving that its operations consistently outperform those of the rest of the industry and steadily expanding its market share.
Thus, up to 50 million euros of the net income obtained from the capital increase will be used to reduce long-term indebtedness (existing senior secured bonds worth 425 million euros, coupon of 5.50% and maturity in 2023 ) as well as to assume the company's interest expenses.
The remaining balance of the raised capital will be dedicated to generic corporate needs, including accelerating growth and developing the subscription platform 'Prime'. In addition, the company expects the capital increase to help diversify its institutional shareholder base by increasing free float, which in turn will lead to increased liquidity and trading of listed common shares.
“We are delighted with the support that our shareholders, both new and existing, have given us, which reflects the market's confidence in eDreams' differential strategy, its innovative vision and its continued better performance vis-à-vis the industry. The additional capital will give us greater financial flexibility and further strengthen an already strong balance sheet. With this, we will be able to accelerate the development of our fast-growing subscription product, 'Prime', as well as seek additional growth opportunities and reinforce our position as one of the world's leading and most innovative travel companies ”, highlighted the advisor delegate, Dana Dunne.
Banco Santander, Barclays Bank Ireland PLC and Deutsche Bank AG act as global coordinators of the transaction; Banco Bilbao Vizcaya Argentaria (in collaboration with ODDO BHF) and Société Générale, as 'joint Bookrunners' and CaixaBank, as 'Co-Lead Manager'. Lazard Asesores Financieros has acted as the firm's financial advisor.
The company has agreed not to issue or sell shares, subject to customary exceptions, for a period of 90 days from the settlement date of the offering.
The granting of the corresponding public deed of capital increase is expected this Thursday and the obtaining of authorizations for the admission to trading of the new shares on the Madrid, Barcelona, Bilbao and Valencia Stock Exchanges, as well as the Interconnection System Stock market, this Friday, January 14.