Aussie Broadband raising $120m; Goldies, Citi, Unified on ticket
It’s slow going at Aussie Broadband as it tries to stitch up a $100 million-plus equity raising to go alongside its $262 million acquisition of software business Symbio.
Fund managers were yet to receive term sheets after market close on Wednesday, though Aussie Broadband spent the day in a trading halt. Potential backers were being approached by three ECM teams – Goldman Sachs, Citi and Unified Capital Partners – to build support for an institutional placement worth about $120 million.
Aussie Broadband managing director Phillip Britt.
The placement’s pricing was still a moving feast, but investors expected it to come at a tight, single-digit discount to Aussie Broadband’s last close of $3.92 a share. They were being told the company would chase up the raise with a share placement plan for its retail shareholders.
Sources said Goldman Sachs was sharing the joint lead manager ticket with Citi, while Unified Capital Partners (née Shaw & Partners’ wholesale team) was the co-manager. Goldman was Aussie Broadband’s bid adviser, and Citi provided the debt for the deal.
It comes after Aussie Broadband agreed to pay $3.01 a share for Symbio in a cash and scrip bid, after gazumping rival bidder Superloop. The scheme bid represented a 26.6 per cent premium to the target’s undisturbed price on July 31.
It said it would fund the purchase via 17 million shares in scrip to Symbio shareholders – about 7 per cent of the company – and new debt facilities worth $435 million which would also refinance Aussie Broadband’s existing debt.
Aussie Broadband shares last traded at $3.92 apiece. The company had a $933 million market capitalisation before the raise.
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