(Bloomberg) -- Landlord Peach Property Group AG will kick off a capital increase with the backing of its four largest shareholders as it seeks to raise fresh funds ahead of a debt refinancing.
The Swiss-listed property firm aims to raise more than 113 million Swiss francs ($128 million), which will double its issued share capital, according to a statement on Wednesday. The capital increase should complete by Dec. 9 and is “fully backed” by its four major shareholders, it said.
Two of these investors, H21 Macro Limited and ZMEX Corporation, agreed to backstop any new shares which are not successfully placed, according to the statement. Ares Management is the largest shareholder in Peach Property with a stake of of 28.6% as of year-end 2023, according to Peach’s website.
The raise comes at a crucial juncture for Peach, which has been seeking to negotiate an extension of its €300 million ($316 million) bond maturity with lenders amid the broader downturn in property valuations. It’s also been confronting disagreement among its shareholders, with investors voting off an Ares’ representative from the board in September.
Peach will offer existing shareholders the option to buy new shares at an offer price of 5 Swiss francs, with the subscription period starting on Nov. 29.
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