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BRIEF-Afterpay Announces Capital Raising Of About $800 Million

Published 07/07/2020, 09:14 am
Updated 07/07/2020, 09:18 am
© Reuters.
APT
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July 7 (Reuters) - Afterpay Ltd APT.AX :

* ASX ALERT-TRADING UPDATE, CAPITAL RAISING AND CO-FOUNDER SELL-DOWN-APT.AX

* ALSO ANNOUNCES A CAPITAL RAISING OF APPROXIMATELY $800M

* ANNOUNCES A CAPITAL RAISING OF APPROXIMATELY $800M THAT INCLUDES A FULLY UNDERWRITTEN INSTITUTIONAL PLACEMENT TO RAISE $650M

* UNDERLYING SALES IN Q4 FY20 WAS $3.8B, 127% ABOVE Q4 FY19

* NON-UNDERWRITTEN SHARE PURCHASE PLAN THAT AIMS TO RAISE APPROXIMATELY $150M

* NET TRANSACTION MARGIN FOR FY20 IS EXPECTED TO BE APPROXIMATELY 2%

* CO-FOUNDERS, ANTHONY EISEN AND NICHOLAS MOLNAR HAVE EACH AGREED TO SELL 2.05M SHARES, REPRESENTING 10% IN CO

* NET TRANSACTION LOSS FOR FY20 IS EXPECTED TO BE UP TO 55 BASIS POINTS

* EBITDA (EXCLUDING SIGNIFICANT ITEMS)2 FOR FY20 IS EXPECTED TO BE BETWEEN $20-25M

* EXPANSION INTO CANADA & ROLLOUT OF IN-STORE IN US EXPECTED IN Q1 FY21

* MERCHANT REVENUE MARGINS FOR FY20 EXPECTED TO BE IN LINE WITH OR BETTER THAN H1 FY20 & FY19

* FY21 EXPECTED TO BE A YEAR OF INCREASED INVESTMENT FOR CO

* ON CAPITAL RAISE, PRICING WILL BE DETERMINED VIA AN INSTITUTIONAL BOOKBUILD, WITH AN UNDERWRITTEN FLOOR PRICE OF $61.75 PER NEW SHARE

* ADDED AVERAGE OF 20.5K NEW CUSTOMERS PER DAY IN Q4 FY20

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