'New chapter' as Metro Bank secures financing package
Metro Bank CEO Daneil Frumkin has purchased up to £2m of the equity raise, while CFO James Hopkinson adds up to £60,000.
According to a regulatory filing, the bank has secured a £325m capital raise, split between £150m of new equity and a £175m MREL issuance, combined with a £600m debt refinancing.
The equity raise was offered at a significant discount to the bank's share price, with shares issued at 30p, set to complete in Q4 2023, subject to shareholder approval.
Spaldy Investments, Metro Bank's largest shareholder, is set to become its controlling shareholder as it leads the equity raise with a contribution of £102m, pushing its holding from 9.2% to c.53%.
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Spaldy Investments founder Jaime Gilinski Bacal said the opportunity to become Metro Bank's major shareholder was driven by his «belief in the need for physical and digital banking underpinned by a focus on exceptional customer service».
«I believe that the package announced today enables the bank to pursue growth and build on the foundational work undertaken over the past three years,» he added.
Metro Bank CEO Daneil Frumkin has purchased up to £2m of the equity raise, while CFO James Hopkinson added up to £60,000.
Existing shareholders will experience «material dilution» with respect to their ownership interest in Metro Bank.
A new MREL raise of £175m has also been agreed, set to complete in Q4 2023, subject to noteholder approval, and sees existing creditors subscribe at par value in an MREL senior instrument maturing in April 2029, with a call date of April 2028.
The £600m debt refinancing package will result in Tier 2 debt holders taking a 40-45% haircut on the notional
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