Southern Cross Austereo raise falls short by $6.5 million

Southern Cross Austereo raise falls short by $6.5 million

Southern Cross Media Group (ASX: SXL) has missed the mark by $6.5 million today in its $19.5 million retail entitlement offer.

The offer, forming part of the group's major capital raising program designed to enhance liquidity, raised approximately $13 million before transaction costs.

The parent company of national radio broadcaster Southern Cross Austereo was hoping to raise $19.5 million in the retail component of its broader equity raise which has to date already bagged $169 million.

The retail entitlement offer was fully underwritten, meaning the shortfall will be taken up regardless of today's result.

Earlier this month Southern Cross Media Group completed the institutional component of the entitlement offer and placement.

That fully underwritten component of the offer was aimed at raising $169 million, but just $149 million was raised across the placement.

The major equity raise was issued at a whopping 45.5 per cent discount and came as the media organisation was experiencing a subdued advertising market due to the COVID-19 financial downturn.

SXL said its advertising revenue was reduced by 10 per cent because of the financial crisis, a figure that is expected to worsen over the duration of COVID-19 restrictions.

The media company will deploy the majority of the raise toward reducing net debt; at the end of 2019 SXL had just $22.5 million in cash on hand and $353 million in drawn down debt.

Shares in SXL are up 9.23 per cent to $0.14 per share at 3:43pm AEST.

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