3i Infrastructure has revealed plans to place up to 81 million shares by way of bookbuild to repay debt drawn on the company’s revolving credit facility.
According to 3i Infrastructure, the placing, which is expected to close on Oct. 10, is expected to provide flexibility to finance future acquisitions from a pipeline of potential infrastructure investments in the United Kingdom and continental Europe.
Since 2015, 3i has invested a total of £1.6 billion ($2 billion) in new portfolio companies, including ESVAGT, WIG, TCR, Valorem, Infinis, Attero, Tampnet, Joulz and Ionisos. It has also sold its stakes in Eversholt, Anglian Water Group, Elenia and Cross London Trains, according to the company.
On Sept. 25, 3i Infrastructure €210 million ($229 million) acquired a 95 percent stake in Ionisos, a cold sterilization facilities owner/operator, servicing the medical, pharmaceutical and cosmetics industries. As a result, the company is £192 million ($235 million) drawn on its revolving credit facility.
The company believes the RFC should not be used as a long-term debt and with a robust pipeline of potential investments, the company said it believes now is an appropriate time to raise new equity.
“Our portfolio of infrastructure assets is balanced by geography and sector and is well placed to continue to deliver our return objectives,” said Richard Laing, chair of 3i Infrastructure. “The proceeds from the proposed placing will repay drawings under our RCF and provide liquidity to fund our pipeline of potential investments across our target markets.”
J.P. Morgan Securities and RBC Europe have been appointed as joint bookrunners in the placing.
