Thank you so much for all your help I really appreciate it.The...

Thank you so much for all your help I really appreciate it.

The Debt is to high & You're right. No wonder they did current right issues.




ASX MEDIA ANNOUNCEMENT
7 September 2012
GCS ANNOUNCES A REVISED CAPITAL RAISING OF APPROXIMATELY $32.2m
• Approximately $20m to be applied to reduce debt.
• Allows GCS Group scope to continue its growth trajectory
Construction services group Global Construction Services Limited (ASX: GCS,“GCS Group” or the “Company”) today announces it will undertake a revised capital raising of approximately $32.2 million for new GCS Group ordinary shares (“New Share”) at an offer price of $0.60 per New Share (“Offer Price”) to existing and new shareholders (the “Offer”) consisting of a:
• Approximately $10.4 million placement to institutional and sophisticated investors (“Institutional Placement”);
• 5-for-16 Accelerated Non-Renounceable Entitlement Issue to institutional and sophisticated investors of approximately $16.9 million (“Institutional Entitlement Offer”), together with an institutional shortfall bookbuild; and
• 5-for-16 Non-Renounceable Entitlement Issue to retail shareholders (“Retail Entitlement Offer”) to raise approximately $4.9 million
Argonaut Securities has been appointed Co Manager to the Institutional GCS Group’s debt has increased over the past 12 months to fund growth, primarily through the acquisition of a significant pool of hire assets in the Site Accommodation and General Plant Hire divisions in Western Australia’s
The capital raising funds will be used as follows:
• Approximately $20m to reduce GCS’s net debt, allowing scope for continued growth across its businesses and improving GCS’ leverage metrics; and
• Provide additional working capital
If the offer is fully subscribed, following the capital raising, GCS’ Pro Forma Net Debt to Equity would decline to 41.8% and Pro Forma Net Debt to EBITDA would fall to 1.47 times.