LONDON (ShareCast) - (Sharecast News) - WH Smith announced its intention to place shares among institutional investors, in turn potentially clearing the way for new financing arrangements on improved terms.
Certain directors and top managers would also subscribed the share placing, including its boos, chairman and finance director, to the tune of ?535,000, the book and stationery retailer announced after the close of trading on Tuesday.

The total number of placing and subscription shares would equal 13.7% of its outstanding share capital.

The new ?120m 12 month + 7 month committed banking facility was extended by BNP Paribas, HSBC and Santander UK and would come on top of its existing facilities.

The group's lenders also agreed to substitute the company's August 2020 and February 2021 covenants with another at February 2021.

Nonetheless, the package was conditional on the Group raising new equity.

Shares of WH Smith finished the session 8.32% higher to 1,094.0p.

The number of shares to be placed and their price would be announced "as soon as practicable" with the timing for closing the bookibuild to be at the discretion of the joint bookrunners and WH Smith.

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