Metlifecare, the retirement village operator whose shares have jumped 60 per cent in the past year, plans to raise up to $80 million in a placement and share purchase plan as it rolls out its expansion plans.
The company's shares were halted for the placement of $70 million of shares
to institutions. It will also raise up to $10 million in a share purchase plan.
Metlifecare had $134 million of debt at April 30, of which $33 million was classified as development debt and $101 million as non-development. Following the placement, non-development debt reduces to $14 million, a further $17 million is listed at land-backed debt and development debt remains unchanged.
The capital raising is "intended to ensure there is more capacity to progress consents and developments on our existing sites, allow us to further expand our greenfield land bank and fund the development of aged care facilities and services," said chairman Peter Brown, in a statement.
The company is aiming for a build rate of at least 200 new beds and units a year by 2015, it said.
