John Laing Infrastructure Fund (JLIF), which raised £270m in an initial public offering last November, said yesterday that it would issue 148.4m new shares at 105p per share.
It will use the proceeds to invest in nine new infrastructure projects, as well as to reduce its debt and finance future acquisitions.
“The proposed capital raise of £155m is another major milestone for JLIF,” said fund chairman Paul Lester. “The proceeds of the issue will predominantly be used for the acquisition of a new portfolio of high quality assets from John Laing Group which fit well within the investment criteria of the company.”
The new assets will include school projects in Edinburgh, Enfield and Newham, and a stake in the North East Fire and Rescue service.
The rights issue, expected to be completed in late October, is not underwritten and will only proceed if orders for more than 60m new shares are received.
MEET THE ADVISERS
JP MORGAN CAZENOVE
JP MORGAN Cazenove is acting as sponsor and sole bookrunner to the John Laing Infrastructure Fund rights issue, fielding a team that includes Patrick Magee, Christopher Nicholls, William Simmonds and Edward Gibson-Watt.
Earlier this year, Magee advised green energy supplier Eaga on its sale to support services giant Carillion for £306m, and in 2010 he helped UK car parts maker Tomkins with its sale to buyout vehicle Pinafore for close to £3bn.
Back in early 2009, he was also part of the JP Morgan team that advised British Energy Group on its huge £12.5bn takeover by French group EDF.
Magee also worked on John Laing Infrastructure Fund’s £270m float last year, when JP Morgan Cazenove acted as global co-ordinator for the listing, as well as joint bookrunner alongside Barclays Capital and RBS Hoare Govett.