(Bloomberg) -- Noble Group Ltd., the junk-rated commodities trader that lost its chief executive officer this week, said that its directors have approved a fully underwritten rights issue to raise about $500 million to cut debt and bolster its balance sheet.
The Hong Kong-based company, which has been seeking to raise more than $1 billion, will offer 1 rights share for each existing share at 11 Singapore cents, according to a statement to the Singapore exchange on Friday. That’s a 63 percent discount from its close on Thursday. Noble Group has endured another turbulent week after announcing the departure of CEO Yusuf Alireza on Monday and saying it planned to sell off a business that less than a month ago he described as a core asset. The trader is seeking a turnaround in its fortunes, selling off parts of the company and pledging inventories to secure debt. Over the past year, its shares collapsed and the company’s credit rating was cut to junk amid attacks on its accounting methods and the slide in commodity prices.
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