Rights issue

On 8 May 2009, the Board of Directors of 3i announces an underwritten Rights Issue to raise approximately £700 million (net of expenses).

Highlights

• 9 for 7 underwritten Rights Issue to raise approximately £700 million (net of expenses) through the issue of 542,060,391 New Ordinary Shares at 135 pence per New Ordinary Share, at a discount to the theoretical ex-rights price of 39.8% when calculated by reference to the closing price of 339 pence per Ordinary Share on 7 May 2009 (being the last business day before the announcement of the terms of the Rights Issue)
• The Board believes that the proposed Rights Issue will enable it to:
  • build on the actions it has taken, and will continue to take, to reduce 3i's net debt and strengthen its balance sheet
  • continue to pace the realisation of its existing portfolio investments in order to gain the benefit of their full potential
  • take advantage of new investment opportunities
• With pro forma net debt of £1.1 billion as at 31 March 2009, after taking account of the Rights Issue and the other action the Board has taken, 3i's balance sheet will be considerably stronger than prior to the Rights Issue
• This strengthened capital structure which will further support 3i's investment grade credit rating should not only facilitate 3i's access to debt capital markets but should also help to strengthen its market position
• The Board therefore believes that 3i's access to financing, flexibility over the timing of realisations and new investments, competitive position, and overall ability to fulfil its potential will all benefit as a result of the proposed Rights Issue, which in its view is in the best interests of its shareholders