AMA Group (ASX: $AMA) Equity Raising Announcement

AMA Group Limited (ASX: $AMA) has announced a fully underwritten $125.0 million equity raising to provide funding certainty and focus on profitable growth. The equity raising includes a fully underwritten institutional placement to raise $32.5 million and a fully underwritten 1 for 0.82 pro rata accelerated renounceable entitlement offer to raise approximately $92.5 million. The funds raised will be used to repay existing senior bank debt, settle expected redemptions on the convertible note put option, and for future debt amortisation payments, repayment of accrued PIK interest on senior debt, transaction costs, future working capital, and growth requirements. The unaudited normalised FY24 pre-AASB 16 EBITDA of $49.02 million, up 125.1% on FY23, provides an improved liquidity position with a pro forma FY24 net total leverage ratio of 0.59x down from 3.18x pre-raising.

Executive Commentary on Equity Raising

CEO Mathew Cooper stated, 'The last nine months has seen strong operational performance across AMA Group. This Equity Raising repositions the balance sheet to allow the business to focus on profitable growth as a dedicated collision repairer.'

Summary of Equity Raising and Outlook

AMA Group's fully underwritten $125.0 million equity raising aims to provide funding certainty and focus on profitable growth. The funds raised will be utilized to repay existing senior bank debt, settle expected redemptions on the convertible note put option, and for future debt amortisation payments, repayment of accrued PIK interest on senior debt, transaction costs, future working capital, and growth requirements. The unaudited normalised FY24 pre-AASB 16 EBITDA of $49.02 million, up 125.1% on FY23, indicates an improved liquidity position with a pro forma FY24 net total leverage ratio of 0.59x down from 3.18x pre-raising. The refinancing of the residual debt is expected to result in a facility of $80 - 100 million, including bank guarantees and working capital facilities, providing growth optionality for the Group.