ZURICH, Aug 13 (Reuters) - Aryzta said on Monday it planned to raise up to 800 million euros ($909.52 million) in new capital to help the beleaguered bakery company achieve its turnaround plan.
The Swiss-Irish speciality baker, whose shares have plunged 77 percent this year, said it aimed to raise the money through issuing new shares, with pre-emptive rights for existing shareholders.
Proceeds from the fundraising will go towards reducing the company’s debt pile which stood at 1.6 billion euros at the end of January.
The company also confirmed its full-year guidance for EBITDA of 296 to 304 million euros, compared with from 420 million euros a year earlier.
It is already cutting costs and selling off some of its business to cut debt.
“A significantly improved capital structure will provide Aryzta with the means to continue to take the necessary steps to re-position the business and deliver on our strategy,” Chief Executive Kevin Toland said.
“Over the medium-term, we expect to generate significant cash flow which will be applied towards continued net debt reduction and to resource selective growth opportunities.”
Aryzta, which makes Cuisine de France bread and burger buns for McDonald’s, said it hopes to issue the new shares by the end of the year, provided it gets the go-ahead from shareholders.
Its share price has slumped as investors fled the company whose debt exceeded its net profit which fell 54 percent to 50.9 million euros in the six months to Jan. 31.
The company will give more details on the capital-raising plan when it reports full-year results on Oct. 1. ($1 = 0.8796 euros) (Reporting by John Revill; Editing by Subhranshu Sahu)