Asos profits jump as it orders £200m equity raise to cope with coronavirus
Asos has launched an equity share raise and extended its revolving credit facility to deal with the impact coronavirus on its business.
The fashion etailer is set to launch an equity share raise in order to protect its business from disrupted trading as a result of coronavirus, through which it expects to raise up to 18.8% of its existing share capital, or more than £200m.
The online retailer also plans to extend it existing revolving credit facility by £60-80m and apply to access the Bank of England’s Covid-19 corporate finance facility set up to lend money to larger companies in a bid to mitigate coronavirus-induced business disruption.
Asos said sales have plummeted between 20% and 25% in the last three weeks as a result of coronavirus and its equity raise and increased credit facility have been put in place in part to “weather no improvement in current trading for at least 18 months.”
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