LONDON (ShareCast) - (Sharecast News) - WH Smith said on Monday that it has secured new lending facilities of ?120m that are conditional on raising new equity.
Responding to recent press speculation about the possibility of an equity issue, the company confirmed it is in an "advanced stage" of preparation for an equity issue of up to 13.7% of its issued share capital by way of a placing.

"Since the group's trading statement on 12 March 2020, WH Smith, along with many businesses, has seen a substantial downturn in economic activity resulting from the Covid-19 pandemic," it said. "The duration of the Covid-19 related crisis is uncertain and, as a result, the group has secured new lending facilities of ?120m, which will strengthen its balance sheet, working capital and liquidity position."

The company said that its financing arrangements, along with mitigating actions to manage the cost base and cash flow, will provide sufficient liquidity to deal "with this most challenging of trading environments".

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