Result of Capital Raising

RNS Number : 5159A

3i Infrastructure PLC

08 June 2016

 

NOT FOR PUBLICATION, RELEASE, OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN, OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL OR TO U.S. PERSONS (WITHIN THE MEANING OF REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED).

This announcement (the "Announcement") is an advertisement and not a prospectus.  This Announcement does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any shares in 3i Infrastructure plc (the "Company") or securities in any other entity, in any jurisdiction, including the United States, nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with, any contract or investment decision whatsoever, in any jurisdiction.  Securities of the Company, including any offering of its shares, may not be offered or sold in the United States absent registration under U.S. securities laws or unless exempt from registration under such laws.  The offering of securities described in this Announcement has not been and will not be registered under U.S. securities laws, and accordingly, any offer or sale of those securities may be made only in a transaction exempt from registration.

This Announcement does not constitute a recommendation regarding any securities.  Any investment decision must be made exclusively on the basis of the final prospectus published by the Company (the "Prospectus") and any supplement thereto in connection with the admission of new ordinary shares of the Company ("New Ordinary Shares") to the premium segment of the Official List of the UK Listing Authority and to trading on London Stock Exchange plc's main market for listed securities ("Admission"). A copy of the Prospectus is available from the Company's registered office.

8 June 2016

3i Infrastructure plc (the "Company" or "3i Infrastructure")

Result of Capital Raising

Highlights

·      Successful completion of capital raise with gross proceeds of £385 million by way of Open Offer, Placing and Intermediaries Offer, increased from original target size of £350 million. 

·      The offering was significantly oversubscribed and the final size has been set so as to ensure that the Company continues to maintain an efficient balance sheet whilst at the same time having sufficient liquidity to bid for new investment opportunities in its current pipeline.  

·      Approximately £230 million of the proceeds will be used to fund the completion of the investments in Wireless Infrastructure Group and TCR, expected to close in June and August respectively. 

·      The remaining proceeds will be used to invest in further new investments from the Investment Adviser's pipeline of opportunities.

Commenting on today's announcement, Richard Laing, Chairman of 3i Infrastructure plc, said:

"We are delighted with the strong support received from existing shareholders for our capital raise and we are also pleased to welcome new shareholders to our register. Both reflect the confidence in the Company's prospects.  The Board and the Investment Adviser look forward to continuing to build upon the strong performance of the existing investment portfolio and further develop the pipeline of new investment opportunities."

Details

·      On 12 May 2016, 3i Infrastructure plc announced details of a proposed issue of New Ordinary Shares.

·      The Board of 3i Infrastructure plc is pleased to announce today that the offer period for New Shares has now closed and that, on the basis of applications received through the Open Offer (and associated Excess Application Facility), Intermediaries Offer and orders taken through the Placing, 233,333,333 New Ordinary Shares, at an issue price of 165p pence per share, will be issued raising gross issue proceeds of £385 million for the Company.

·      The issue was significantly oversubscribed, and, in accordance with the terms and conditions of the issue, all applications made pursuant to Open Offer entitlements will be met in full.

·      The Company has elected to exercise part of the Additional Issue, as detailed in the Prospectus. The Additional Issue has been sized to ensure that 3i Infrastructure continues to maintain an efficient balance sheet whilst at the same time having sufficient liquidity to bid for new investment opportunities in its current pipeline. 

·      The net proceeds of the issue will be used to:

o  fund the completion of the Company's previously announced investments in Wireless Infrastructure Group and TCR, totaling approximately £230 million which, in the absence of the issue, would have been entirely funded using the Company's revolving credit facility; and

o  invest in further new investments from the Investment Adviser's pipeline of investment opportunities.  

·      As a result of the issue, 3i Group and a subsidiary maintain their aggregate 33.96% ownership in the Company.  As part of their subscription under the issue 3i Group, together with its subsidiary, subscribed for 6,715,604 shares under the Placing for a total consideration of £11,080,747.  The issue of shares to the 3i Group under the Placing, which is a substantial shareholder of the Company under Chapter 11 of the Listing Rules, amounts to a smaller related party transaction as defined in Listing Rule 11.1.10. 

·      Application has been made for the 233,333,333 New Ordinary Shares to be admitted to the Official List of the UK Listing Authority and to trading on the London Stock Exchange's main market for listed securities with effect from 8.00 a.m. on Friday, 10 June 2016.  Thereafter the Company will have a total of 1,026,549,746 shares issued and outstanding.

For further information, contact:

J.P. Morgan Cazenove - Joint Bookrunner [phone]

William Simmonds

Edward Gibson-Watt

Ed Murray

RBC Capital Markets - Joint Bookrunner [phone]

Darrell Uden

Matthew Coakes

Duncan Smith

Rothschild - Financial Adviser to the Company [phone]

James Douglas-Hamilton

Peter Nicklin

Mark Warham

Scott Harris - Intermediaries Offer adviser [phone]

Jeremy Wiseman

Tim Brenton

Capitalised terms in this announcement have the meanings given to them in the prospectus issued by the Company on 12 May 2016. 

Notes to editors:

About 3i Infrastructure plc

3i Infrastructure plc is a Jersey-incorporated, closed-ended investment company, listed on the London Stock Exchange and regulated by the Jersey Financial Services Commission. The Company is a long-term investor in infrastructure businesses and assets. The Company's market focus is on economic infrastructure and greenfield projects in developed economies, principally in Europe, investing in operating businesses and projects which generate long-term yield and capital growth.

3i Investments plc, a wholly-owned subsidiary of 3i Group plc, is authorised and regulated in the UK by the Financial Conduct Authority and acts as investment adviser to 3i Infrastructure plc.

iMPORTANT Information

Neither this announcement nor any copy of it may be made or transmitted into the United States of America (including its territories or possessions, any state of the United States of America and the District of Columbia) (the "United States"), or distributed, directly or indirectly, in the United States.  Neither this announcement nor any copy of it may be taken or transmitted directly or indirectly into Australia, Canada, Japan or South Africa or to any persons in any of those jurisdictions, except in compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of United States, Australian, Canadian, Japanese or South African securities laws.  The distribution of this announcement in other jurisdictions may be restricted by law and persons into whose possession this announcement comes should inform themselves about, and observe, any such restrictions.  This announcement does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for securities in the United States, Australia, Canada, Japan or South Africa or in any jurisdiction to whom or in which such offer or solicitation is unlawful.

The Company has not been and will not be registered under the U.S. Investment Company Act of 1940, as amended.  In addition, the New Ordinary Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States and, subject to certain exceptions, may not be offered, sold, pledged, or otherwise transferred, directly or indirectly, in or into the United States or to or for the account or benefit of U.S. persons (as such terms are defined in Regulation S under the Securities Act ("Regulation S")) or U.S. Residents (as such term is defined in Appendix II).  There will be no public offer of the New Ordinary Shares in the United States.  The Company has not been and will not be registered under the US Investment Company Act of 1940, as amended, (the "Investment Company Act") and investors will not be entitled to the benefits of the Investment Company Act.

The securities to which this announcement relates have not been approved or disapproved by the U.S. Securities and Exchange Commission, any state securities commission in the United States or any United States regulatory authority, nor have any of the foregoing authorities passed upon or endorsed the merits of the offering of the New Ordinary Shares or the accuracy of adequacy of this announcement. Any representation to the contrary is a criminal offence in the United States.

The securities referred to herein have not been registered under the applicable securities laws of Australia, Canada, Japan or South Africa and, subject to certain exceptions, may not be offered or sold within Australia, Canada, Japan or South Africa or to any national, resident or citizen of Australia, Canada, Japan or South Africa.

Marketing for the purposes of the Directive 2011/61/EU (the "AIFMD") by the Company and/or a third party on its behalf of the New Ordinary Shares in relation to the Placing and Open Offer will only take place in an EEA Member State if the Company is appropriately registered or has otherwise complied with the requirements under the AIFMD (as implemented in the relevant EEA Member State) necessary for such marketing to take place.

Any subscription for New Ordinary Shares in the Offer and Additional Issue (if any) should be made solely on the basis of the information contained in the Prospectus, which contains detailed information about the Company and its management.

J.P. Morgan Securities plc, RBC Europe Limited and N M Rothschild & Sons Limited ("Rothschild") are each authorised by the Prudential Regulation Authority (the "PRA") and regulated in the UK by the PRA and the Financial Conduct Authority.  Each of the Joint Bookrunners and Rothschild is acting exclusively for the Company and no one else in connection with Admission.  Neither the Joint Bookrunners nor Rothschild will regard any other person(s) (whether recipients of this document) as a client(s) in relation to the issue and will not be responsible to anyone other than the Company for providing the protections afforded to their respective clients nor for the giving of advice in relation to  Admission or any transaction, matter or arrangement referred to in this announcement.

 

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