Cattles to launch £200m rights issue

Sub-prime loan company Cattles has revealed plans to raise £200m from a rights issue.

The rights issue, which has been underwritten by Citi and HSBC, will see new shares issued at 128p.

Each shareholder will be offered nine new shares for every existing 20 shares.

A statement issued by Cattles says: “Although the group has been strongly supported in the bank and bond markets for many years, the credit crunch has illustrated the desirability of diversified funding.”

It adds: “The rights issue will diversify its sources of funding and will be used to finance the group’s long-term growth.”