SMU Lowers Equity Sights

Chile’s SMU has approved a $251m equity capital raise, it says, an amount lower than the $300m it originally had in mind. The retailer is raising funds and selling assets to shore up finances, after it revealed in July reporting errors that showed it had breached debt covenants. SMU bondholders agreed last month to grant a waiver for the covenants, in exchange for a fee equivalent to 1.0% of the face value of their debt. SMU has also agreed to take out a subordinated credit for $300m before the end of the year and is discussing the sale of $300m-$400m in non-core assets.