TomTom NV, the Amsterdam maker of navigation devices, plans to raise 430 million ($599.4mm) in a fully committed rights offering and through a private placement. Proceeds will be used reduce debt. The manufacturer said its lenders also agreed to change the terms of its financial covenants to provide “greater headroom.”
“The equity offering we have announced today provides us with a substantially strengthened balance sheet,” Chief Executive Officer Harold Goddijn said in the statement.
The company will sell 359 million ($500.8mm) of equity through a rights offer and 71 million ($99mm) through a private placement. The companys four founders, including Janivo Holding BV and Cyrte Investments BV, will buy 169.3 million ($227.3mm) of shares.
