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IWG to raise 300m in bond offering for acquisitions

By Sean Farrell

Date: Wednesday 02 Dec 2020

LONDON (ShareCast) - (Sharecast News) - IWG said it would raise 300m in a convertible bond issue to help pay for a string of planned acquisitions at attractive prices.
The FTSE 250 workspace provider said it expected increased demand for flexible workspace after the changes wrought by the Covid-19 pandemic. Companies are rethinking their office requirements after employees worked from home successfully during the crisis.

IWG said it was investing in growth initiatives and that opportunities to buy "brands, centres, services and technologies" at realistic prices had emerged. They include a UK acquisition, a bolt-on US purchase in the final stages of due diligence and other potential deals in Europe, Asia and the US. In total the deals would cost more than 300m in cash, it said.

The company said: "The net proceeds from the issue of the bonds will provide IWG with the additional financial flexibility to capitalise on these opportunities and also retain a strong financial position in the current market environment. The issue of the bonds will also diversify the company's sources of funding as well as further strengthen IWG's liquidity position and maturity profile and reduce its weighted average cost of capital."

IWG shares fell 7.1% to 326.60p at 08:20 GMT.

The bonds will pay between 0.5% and 1.25% a year with an initial conversion price at a premium of between 35% and 40% above the volume weighted average share price between launch and pricing of the offering. The bonds will be convertible into equity only in limited circumstances before June 2021.

IWG, formerly known as Regus, will hold a shareholder meeting on or near 21 December to seek shareholder approval to issue shares for the purpose of settling conversions of the bonds.

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IWG Market Data

Currency UK Pounds
Price 304.30p
Change Today 12.40p
52 Week High 383.60p
52 Week Low 222.60p
Volume 1,269,492
Shares Issued 1,007.36m
Market Cap 3,065.41m

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Total 10
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IWG Dividends

  Latest Previous
  Interim Final
Ex-Div 05-Sep-19 25-Apr-19
Paid 04-Oct-19 24-May-19
Amount 2.15p 4.35p

Trades for 22-Jun-2021

Time Volume / Share Price
15:05 1,594 @ 304.30p
15:05 527 @ 304.10p
15:05 750 @ 304.20p
15:05 592 @ 304.40p
15:05 8 @ 304.40p

IWG Key Personnel

Chair Douglas Sutherland
CEO Mark Dixon
CFO Glyn Hughes