Eurotunnel in 915m euro cash call

Eurotunnel has slashed its debt

Channel Tunnel operator Eurotunnel plans to raise 915m euros (�718m) from shareholders to help the indebted firm to pay off creditors.

Existing investors will be offered Eurotunnel shares at 8.75 euros - a discount of 28% to the company's share price on Friday.

Eurotunnel was hamstrung by high debt levels for many years, but carried out a complex restructuring in 2007.

As a result, its debts were more than halved to about 4bn euros.

Eurotunnel said the money raised from the rights issue would allow the firm to make further savings on its financial charges.

"This rights issue will enable Groupe Eurotunnel to control its future as a long-term infrastructure concessionaire with good prospects in terms of profitability and recurrent cash flow," Eurotunnel Chairman Jacques Gounon said.

Boosted by the debt restructuring, the firm reported its first profit last year when it made 1m euros ($1.6m; �795,000).

The firm said the result showed that it had "broken" with its troubled financial past.

Eurotunnel's shares are listed in London and Paris.

E-mail this to a friend

Printable version