This has been done through the issue of a second tranche of subordinated convertible loan notes, listed today on the Channel Islands Stock Exchange, together with the successful placing of new Ordinary Shares with new and existing investors.
This second issue and placing were sponsored by Cenkos Channel Islands and follow a previous loan note issue by the club in 2009, when it raised £3 million to fund a new conference suite within the Caterpillar Stand, now considered to be among the best in the East Midlands. The new loan notes were issued with a coupon of 7 per cent and convertible into Ordinary Shares at £2.25 (the same terms as the 2009 issue), raising £2.57 million.
The Club has raised an additional £1.87 million through a placing of just under 1.1 million Ordinary Shares with new and existing investors at £1.75 per share. On completion of the placing the Club will have a fully-diluted issuance of 10 million shares, equivalent to a market capitalisation of £17.5 million at the placing price.
This second major fundraising in two years will enable the Club to embark on the further development of Welford Road, this time a multi-storey car park behind the Holland & Barrett Stand, together with an upgrade of the stand’s changing rooms and medical facilities.
Peter Tom CBE, Chairman of Leicester Tigers, said: “We’re delighted that once again investors have shown their confidence in the Club by digging deep to raise more than £4.4 million, thereby securing the next important phase of the Tigers’ future.
“We can now move forward with confidence to a listing of our Ordinary Shares by the end of the year.
“We’ve had a good season in the Aviva Premiership so far and remain three points clear, with the play-offs to follow. It’s going to be a hugely exciting finish to the season.
“Thanks to this new tranche of funding, we can now ensure the continued development of Welford Road, providing additional car parking not only for the Club, but also for the nearby hospital and university, firmly establishing Welford Road as a multi-functional centre available to everyone, in the heart of the East Midlands.
“Most importantly, this is one more step towards realising our long-term vision for Leicester Tigers as the most successful and best-supported club rugby team in the world.”
