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Dairy company to raise funds
A national firm advised Warrnambool Cheese and Butter Factory on its $142 million pro-rate renounceable entitlement offer.
Lara Bullock
Firms: Clayton Utz (Warrnambool Cheese and Butter Factory Company Holdings Limited).
Value: $142 million
Area: Capital equity raising
Key players: The Clayton Utz team was led by partner Karen Evans-Cullen (pictured), who was assisted by senior associate Patricia Paton.
Deal significance: Warrnambool Cheese and Butter Factory Company will raise up to $142 million (before costs) through a 3 for 8 pro-rata renounceable entitlement offer of new shares at an offer price of $6.75 per new share.
The entitlement offer is not underwritten.
All of the proceeds from the entitlement offer, less costs, will be used to repay debt, which will strengthen the balance sheet and provide greater financial flexibility to invest in strategic capital investment initiatives.
This includes a planned capital project to expand capacity to manufacture cheese and other dairy products. This project will commence in FY17 and is expected to be completed in FY18 and will cost approximately $40 million.
