Metro Bank Holdings PLC (LSE:MTRO) has secured a financial package with investors following intense weekend negotiations, providing the UK-based challenger bank with much-needed capital and averting regulatory concerns.
Announced on Sunday, the deal comprises a £325 million capital raise, divided between £150 million in new equity from Metro's largest shareholders and £175 million in fresh debt from bondholders.
Colombian billionaire Jaime Gilinski Bacal, Metro's biggest shareholder, is slated to contribute £102 million to the new equity, positioning him to become the bank's majority shareholder.
Financing arrangement also includes £600 million in debt refinancing, requiring Metro's Tier 2 bondholders to accept a 40-45% haircut on their investments.
Metro Bank CEO Dan Frumkin said the package "marks a new chapter" for the institution. Gilinski Bacal echoed this sentiment, expressing confidence that the deal would enable Metro to pursue growth.