Atlas Arteria to raise $495m equity

Toll road operator Atlas Arteria has cancelled its dividend and announced a $495 million equity raising to bolster finances after motorists stayed home during the coronavirus pandemic.

The business, which operates four toll roads in France, Germany and the US, says its deferred dividend for the second half of 2019 is cancelled.

The savings will be used to repay a 350 million euro loan from MIBL Finance of Luxembourg.

Meanwhile, the equity raising will include an institutional placement of $420 million and a security purchase plan of up to $75 million.

The placement will offer shares at $6.20, which management said was a 7.5 per cent discount on the last traded price of $6.70.

The share purchase plan will offer securities at a price that is the lower of the placement price, and the volume weighted average price of Atlas Arteria securities during the five trading days up to, and including, the plan closing date less a 2.0 per cent discount.

Chief executive Graeme Bevans said the business was well positioned to weather the pandemic.

He said the easing of restrictions in Europe had helped improve traffic volumes in recent weeks.

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