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Better Capital plans fundraising, conversion to PCC

Better Capital Limited intends to raise further capital through an issue of new 2012 Shares for investment in a new fund, Better Capital Fund II, to invest principally in UK and Irish turnaround opportunities. A total of GBP158 million has been raised under Firm Placing, with up to a further GBP42 million being made available to existing shareholders under the Offer and conditionally under the Placing.

The CompanyHAS also announced its intention to convert into a protected cell company (PCC) to enable existing and new shareholders to hold shares in an innovative structure.
In total, up to GBP200 million will be raised by Firm Placing, Placing and Open Offer of 2012 Shares at a price of 100 pence.

The company has reported strong support for 2012 Shares by current and new investors, directors and management in what it describes as challenging fund raising conditions.

The company will shortly issue a Prospectus and will convene an Extraordinary General Meeting to be held on 11 January 2012 to approve the proposed conversion to a PCC, fund raising and other associated matters.
The Directors of the Company believe that current economic conditions should lead to a further attractive period for turnaround investment opportunities. Better Capital believes that Fund II can be substantially invested or committed within 24 months.
Richard Crowder, Chairman, Better Capital Limited, says: “We have received strong support from investors for our new shares to invest in a new vintage of turnaround opportunities. The effects of the recession experienced by the UK and Irish economies have continued and resulted in businesses suffering from poor trading conditions and restricted corporate credit. These conditions created a wide range of opportunities for Better Capital Fund I, which is now almost fully committed.  Better Capital Fund II will target selective investment opportunities from Better Capital’s strong deal flow where the General Partner and the Consultant see the potential for value generation through the provision of capital, often together with operational expertise to enhance business performance.”
Jon Moulton (pictured), Chairman, Better Capital LLP, says: “Better Capital Fund I has rapidly developed a portfolio of high quality turnaround opportunities which is generating positive growth trends since Better Capital’s investment and operational input.  With cash readily available, we have been able to assess and act quickly to save companies, invest in turnaround efficiencies and return companies to profitability.  We expect banks to increasingly pull back from their support of distressed companies, as tough economic conditions persist and regulation forces banks to divest of equity.  These factors should only increase the opportunities for Better Capital Fund II.”

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