Ann: Announcement - market update and equity raising, page-3

The Costa Group Board has decided to raise $176 million in equity at a price of $2.20 per share
through a fully underwritten accelerated renounceable pro-rata entitlement offer, with retail
rights trading, resulting in the issuance of approximately 80 million new ordinary shares
("New Shares").
The equity raising will strengthen Costa's balance sheet and position the company to deliver
on current and future growth initiatives.
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Although Costa’s strategy is growth oriented, management maintains a prudent and
disciplined approach to capital deployment and generally targets a minimum return on
capital of 20% on new investments in three to five years(typically measured as EBITDA divided
by capital employed).
Costa targets a long-term leverage range of 1.5 to 2.0x ND / EBITDA. Leverage at 30 June
2019 on a pro forma basis to reflect the Entitlement Offer is 1.14x net debt/EBITDA-SL.
Under the Entitlement Offer, eligible shareholders are invited to subscribe for 1 new Costa
share for every 4 existing Costa shares (Entitlement) held at 7pm (Sydney time) on Thursday,
31 October 2019 (Record Date).
All New Shares offered under the Entitlement Offer will be issued at a price of $2.20 per New
Share, which represents a:
₋ 31.4% discount to theoretical ex-rights price (TERP) of $3.21
₋ 36.4% discount to the last close price of $3.46 on 21 October 2019
Each New Share issued under the Entitlement Offer will rank equally with existing Costa
shares.

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Slaughter.