Synthomer confirms it's considering capital raise, shares crater

(Sharecast News) - Synthomer shares cratered on Wednesday after the chemicals company said it was considering a capital raise as it works with lenders to refinance existing debt facilities due in the second half of next year. Responding to media speculation, it said in a brief statement: "In support of this refinancing, the company is giving consideration to a range of options to reduce the company's leverage and underpin the sustained delivery of its speciality chemicals strategy, including the possibility of raising additional capital."

Synthomer said no decisions have been made as to whether, when or on what terms any such options may be undertaken, and further announcements will be made as appropriate.

At 1430 GMT, the shares were down a whopping 35% at 31.13p.

Earlier in the day, Sky News reported that Synthomer was working with bankers at JP Morgan on the prospective cash call.

City sources told Sky a deal was not certain to proceed but that if it did, Synthomer could seek to raise more than its entire current market capitalisation of just £90m.