Contractors cash up

MINING service providers Ausenco and Austin Engineering have announced capital raisings.

Kristie Batten

Ausenco has completed a $A10.7 million private placement to its cornerstone investor, Spain’s Duro Felguera.

The issue price was 60c per share, a 15% premium to Tueday's close.

Duro will have a 14.5% stake in Ausenco. The two signed a strategic alliance agreement earlier this month to jointly tender for new work.

Ausenco said today it expected first half revenue to be $140 million, $30 million lower than the previous half, and an underlying earnings before interest, tax, depreciation and amortisation loss of $3 million.

Meanwhile, South America-focused Austin has launched a $51.6 million raising, comprising a pro-rata accelerated non-renounceable entitlement offer to raise $31.6 million and a three-year subordinated loan with LIM Advisors Special Situations Fund to raise $20 million.

The entitlement offer is fully underwritten by Argonaut Capital and Bell Potter Securities.

The company is aiming to reduce net debt to $61 million.

Austin flagged full-year revenue of $205 million and normalised EBITDA of $14.5-15.5 million, increasing to revenue of $235 million and EBITDA of around $20 million in the 2016 financial year.