capital raising

Franchise chain operator, Retail Food Group (ASX:RFG) have requested its shares on the ASX stockmarket be suspended ahead of planned capital raising.

• Retail Food Group's capital raising will set a floor price of $2.80 per share, issuing 13.6 million shares and raise $38 million for the company.
• The capital raising will be conducted by Petra capital and will be sold to institutional and sophisticated investors.

GrainCorp (ASX:GNC) has seen a shortfall in its capital raising.

• $28 million shortfall in retail component of capital raising.
• Shortfall forces underwriter Credit Suisse to place the stock with institutional investors.
• $159 million capital raising with 46 percent of the 5.6 million shares on offer going to retail investors.
• Retail issue was priced at $8.80 per share.

Shares of waste management company Transpacific Industries Group (TPI) rose by 0.5 cents to 80.5 cents today after its former founder and executive chairman Terry Peabody filed a legal action to the company claiming $4.6 million of damages yesterday. Peabody is suing his former company regarding its equity raising.

Bendigo and Adelaide Bank (BEN) has increased its equity sale to $150 million from the $120 million it announced to raise last Friday after receiving a strong demand from institutional investors. The regional lender planned to raise its capital to fund its acquisition of the Australian arm of Bank of Cyprus and to strengthen its balance sheet.

Shares in BlueScope Steel (BLS) face a trading halt as its recent capital raising falls short. The steelmaker company failed to sell some of the new shares it issued in its last capital raising.

Australian steelmaker Bluescope Steel (BSL) has announced to raise $600 million capital in order to pay its existing debt.

The steelmaker recently announced that their debts climbed to a high of $1.56 billion by October 31 from $1.068 billion last June 30.

A fully underwritten four-for-five rights issue is used to raise the target capital, giving its shares a price of 40 cents per share, a 34 per cent discount to yesterday's 61 cents per share.

Fortescue Metals (ASX:FMG) is raising US$1.5 billion in junk bonds to fund their expansion in iron ore operations in Western Australia to 155 million tons per annum (mtpa).

The securities issued by FMG are eight year notes at 8.25 percent interest and are callable after four years. The amount was raised by a subsidiary: FMG Resources (August 2006) Pty. Ltd. The previous expansion to 55 mtpa was completed in June 2011.

Gunns' (ASX:GNS) asset sale to raise capital for commissioning its Tamar Valley pulp mill has met with positive market reaction. Gunns shares rose 27 percent yesterday, to close at 42 cents. The timber company said it is on track for $40 to $50 million full-year underlying earnings.

To further develop its Mbalam iron ore venture, metals explorer Sundance Resources (ASX:SDL) said it would place 148.1 million new shares at 40.5 cents without the need for shareholder approval in a $60m placement raising to investors.

Australia's top construction group, Leighton Holdings (ASX:LEI) has raised $514 million from institutions as part of its new share sale, with major Leighton shareholder Hochtief taking up full entitlement. Overall, institutions took up about 98 percent of entitlements under the $22.50 per share offer. 500,000 shares not taken up were sold in a bookbuild at $24.50 per share.