Zip Co (ASX: ZIP) taps investors for $25m to fund liability management exercise

• Zip Co (ZIP) taps investors for $24.7 million to fund its liability management exercise
• The company will issue 52.5 million shares at 47 apiece, a 6.9 per cent discount to ZIP’s last traded price on June 7
• Funds will go toward paying off some of the company’s $330 million outstanding zero coupon senior convertible notes which are due in 2028
• Zip reported it received strong interest in the placement from both domestic and offshore institutional investors
• Shares rose 1.49 per cent, trading at 51.3 cents at 12:22 pm AEST

Zip Co (ZIP) has tapped investors for $24.7 million to fund its liability management exercise.

The company announced it would issue 52.5 million shares at 47 cents apiece, a 6.9 per cent discount to ZIP’s last traded price of 50.5 cents on June 7.

Zip Co-Founder and Global Chief Operating Officer Peter Gray said the funds would go toward paying off some of the company’s $330 million outstanding zero coupon senior convertible notes which are due in 2028.

“The placement will be used to fund the retirement of $39.8 million of our convertible notes at a very significant discount to face value,” he said.

“Along with the consent solicitation process, this exercise will reduce our corporate debt by $192.2 million, further strengthening the balance sheet and positioning the company for our next phase of growth.”

Zip reported it received strong interest in the placement from both domestic and offshore institutional investors.

Zip rose 1.49 per cent, trading at 51.3 cents at 12:22 pm AEST.