Mitchells & Butlers has completed its capital fundraise, securing gross proceeds of £350.5m from shareholders. 

The Toby Cavery and All Bar One operator raised the funds through an open offer that will see it issue 167m new shares.

The raise sees shareholder groupings Piedmont Inc., Elpida Group Limited and Smoothfield Holding Ltd being acquired under the Odyzean Group, which will hold approximately 55% of the company’s issued share capital.

Odyzean made an undertaking to take up its entitlements under the open offer and to subscribe for any additional shares that become available.

Before launching the raise, M&B said its liquidity position had “deteriorated significantly” as a result of the impact of the Covid-19 pandemic, with the open offer critical for the continued operation of the group and its immediate financial stability.

The capital provides the company with the capital to reduce its unsecured debt and to support its secured debt financing through an injection of equity, allowing it to meet its fixed obligations, M&B said.

It also enables the resumption of investment in the estate to maintain its competitive position, provide the financial stability and strength to emerge from the crisis, and allow previous momentum to be regained.

The company has already reached agreement with its banks for a new £150m three-year unsecured revolving credit facility, which was conditional on completion of the open offer.

Agreement was reached with HSBC in respect of potential breaches under its secured debt financing.

The open offer remains conditional on passing by company shareholders at the General Meeting to be held at 10am today.

Application has been made for the new shares to be admitted to the premium listing segment of the London Stock Exchange, which is expected to become effective from tomorrow (12 March).