Australasian recruitment and HR services provider Chandler Macleod (CMG: ASX) announced today that it has completed a fully underwritten institutional placement to raise AUD 24.7 million (USD 22.1 million).

The placement was completed at an issue price of AUD 0.45 (USD 0.40) per share, representing a 5.3% discount to the closing price of Chandler Macleod’s shares on 13 December 2013 and a 3.6% discount to the volume weighted average price for the five trading days prior to the announcement of the placement.

New shares issued under the placement will rank equally with existing Chandler Macleod shares.

Funds received from the placement will be used to pay down existing debt facilities and further strengthen Chandler Macleod’s balance sheet. The placement also enables Chandler Macleod to consider additional acquisitions aimed at further diversifying the business mix. In September, the company reported that it had acquired a majority stake in New Zealand-based HR and change management agency Grafton Consulting.

Chandler Macleod Managing Director, Cameron Judson, commented: “Over the last 12 months we have undertaken a number of strategic initiatives and positioned the company well to capitalise on any improvement in market conditions.”

“The institutional placement will provide us with increased financial flexibility to continue to pursue our growth strategy (as outlined in the Chairman’s AGM address on 7 November 2013).  We are very pleased with the strong demand for the Placement from a broad range of existing and new institutional investors,” Mr Judson added.

The Board also confirmed that the earnings guidance, provided on 7 November 2013, for the full year 2014 EBITDA result is expected to be in-line with the result achieved in 2013, despite a much lower first half result than the same period last year.

Based on its current share price, the company has a market value of AUD 219.8 million (USD 196.7 million).