AMA Group Limited has completed its latest financial steps aimed at shoring up its future by generating more funding certainty and renegotiating debt.
This week Australia’s largest collision repair group announced to the Australian Stock Exchange it had completed $125 million equity raising that it announced in July and had secured a debt extension until the end of 2025.
It announced the equity raising funds including both institutional and retail components had been received and new shares issued under the retail entitlement offer would begin normal trading on Friday August 16.
The debt extension, previously due to mature in October 202 has been rescheduled to December 31, 2025.
The capital raising also comes on the back of some positive news about the momentum in its earnings.
Plan complete
Under the plan announced last month, it aimed to raise the funds in two separate share offers, both fully underwritten.
- Institutional placement to institutional and sophisticated investors to raise $32.5 million ‐
- 1 for 0.82 pro rata accelerated renounceable entitlement offer to raise approximately $92.5 million.
“The Funds raised under the Equity Raising will be used to repay $50.0 million of existing senior bank debt with an additional $50.0 million to be held in a locked account to settle expected redemptions on a convertible note put option (expected in March 2025),” the plan read.
“The remaining net proceeds will be put towards future debt amortisation payments ($5.0 million in each of June 2025 and September 2025), repayment of accrued PIK interest on senior debt ($3.8 million), transaction costs, future working capital, and growth requirements.
Australia’s largest repair group had also announced its unaudited earnings ( before tax, interest etc) for the year ending June 30 were $49.02 million, up 125.1 per cent on the previous financial year.
It comes after a year of big change at the group including a major overhaul of its board and senior executive, along with plans to sell the ACM Parts section of the business and become a pure crash repair business.
The AMA Group will hold its Annual General meeting on August 23 with updated figures.