French Train Maker Takes Action on Net Debt

  • Alstom to raise about $1 billion in share capital increase
  • Reducing debt levels through rights issue and asset divestments
  • Subscription price of EUR13 per new share (29% discount from Friday’s closing price)
  • Part of a larger EUR2 billion deleveraging plan
  • Hybrid bonds placement also part of the plan
  • Around EUR1.2 billion to be used for debt repayment by September

Alstom, the French train manufacturer, is raising approximately $1 billion through a share capital increase to reduce its debt levels. The company announced that it will use rights issue and asset divestments as part of its EUR2 billion deleveraging plan, with a subscription price of EUR13 per new share (a 29% discount from the previous closing price). This move also includes a hybrid bonds placement. Alstom’s net debt was reported at EUR2.99 billion as of March 31, up from EUR2.135 billion in the previous year. The company plans to use around EUR1.2 billion from asset sales and capital market transactions for debt repayment by September.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Alstom’s plan to raise share capital, the subscription price of new shares, and its debt reduction strategy. It also mentions the company’s net debt as of March 31. However, it lacks some context or background information on Alstom and the reasons behind the need for deleveraging.
Noise Level: 4
Noise Justification: The article provides relevant information about Alstom’s plan to raise share capital and reduce its debt levels, but it lacks in-depth analysis or exploration of the consequences of this decision on the company and the industry. It also does not offer any actionable insights or new knowledge for readers.
Public Companies: Alstom (ALO)
Key People:

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Financial Relevance: Yes
Financial Markets Impacted: Alstom shares and financial markets in general
Financial Rating Justification: The article discusses Alstom’s plan to raise 1 billion euros through a share capital increase, which directly affects the company’s stock price and debt levels. This information is relevant for investors and impacts the financial markets as it shows the company’s efforts to reduce its net debt and may influence investor decisions.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.marketwatch.com