AWB Limited (AWB) announced it would tap the market for $459 million through a fully underwritten equity raising aimed at transforming the company’s balance sheet. The company also announced it had reached an agreement with its core banks to refinance $575 million in corporate debt facilities.

AWB said its pro forma net corporate debt following the equity raising is estimated to be $490 million as at 30 September 2009.

The company said the equity raising and debt refinancing supported its intention of maintaining an investment grade credit rating.

AWB said it would also recognise a $120 million non-cash impairment against Landmark Financial Services goodwill in the 2008/09 financial year.

Managing director, Gordon Davis, said the company had a number of opportunities in front of it.

Today’s announcement will fundamentally reposition the company’s balance sheet for this journey,” Mr Davis said.

“AWB’s directors and management fully support the refinancing, and recommend it to all shareholders.”

The company said the equity raising would comprise of a $359 million 1 for 1 entitlement offer, including a $115 institutional component and a $244 million retail component. In addition, there is also a $100 million institutional placement.

AWB said shares would be offered at $1.00 each, which represents a 30.8% discount to the closing price of AWB shares on September 22.

AWB shares were halted at $1.445.