Electra to raise £100m in bond offering

The London-listed private equity firm is planning to issue convertible bonds at an interest rate of 5% per year.

Electra Private Equity, a listed private equity investment trust, plans to raise up to £100 million (€120 million; $156 million) through an issue of bonds at an issue price of 100 percent.

A spokesperson for Electra was not immediately available at press time, but the firm cited an “opportune time to expand the capital base of the company” as the reason for the forthcoming share issue.

The bonds will pay 5 percent interest per year, and will be convertible to ordinary shares at a price of £20.50 per share, equal to the net asset value per ordinary share as of 30 September 2010. The bonds will mature in 2017.

Under the terms of the offer, qualifying shareholders will be able to subscribe for bonds at the issue price pro-rata to current holdings of ordinary shares. The offer is expected to close on 21 December 2010.

Institutional investors will also be able to apply to participate in a conditional placing of the bonds.

Electra Private Equity has a market cap of £567 million and is listed on the London Stock Exchange. In the last 30 days, its shares have risen in value from a low of £15.62 to £16.05 as of press time.