Peppa Pig owner Entertainment One (LON:ETO) has been on the slide over the last two days as its new refinancing package failed to bring home the bacon.
The firm has changed its debt facility, on which it had been paying a 4.3% interest rate, for a new facility with a £285mln senior loan note due December 2022, paying 6.8% interest.
It follows the rights issue to fund the additional Peppa Pig acquisition which raised £60mln more than it needed.
Peel Hunt said: "It doesn’t seem long ago that the company commentary on funding was that senior debt would be extinguished in the near future.
“Here we are with the creation of a seven-year £285mln senior note. The cost of this is significantly above the debt it replaces.”
Additionally, the company said spending cuts would lead to a drop in revenue for the year.
As a result, Peel Hunt has taken the axe to forecasts, dropping revenues for the year by more than £100mln to £793mln.
Shares have dropped 28% so far this week, and were 15% lower to 150p on Tuesday.
Elsewhere, the FTSE100 was also on its way down, losing around 70 points, or 1.1% to 6,151.
The miners continued to take a hammering after an 8.7% and 6.8% drop in Chinese imports and exports in November caused the Shanghai Composite to fall to fresh three-week lows.
Alastair McCaig at spread-betting firm IG said: “In years gone by the FTSE’s greater weighting in the mining and energy sectors had been a blessing, of late though it continues to be a millstone around its neck.”
In UK economics, industrial output edged up in October but manufacturing output faced a renewed dip, sparking fresh fears for Britain's fragile recovery.
Glencore (LON:GLEN) was the biggest faller of the day so far, falling back more than 10% to 76p, while there were also losses for Anglo American (LON:AAL), which fell 8.5% to 337p, and Rio Tinto (LON:RIO) down 6% to 1,941p.
And there looks to be little respite for the markets once trading in the US opens, with Wall Street shares poised to continue lower on Tuesday.
Away from the FTSE100, Enquest (LON:ENQ) rose as the North Sea explorer unveiled a 26% jump in second half output, said it was confident of increasing production next year and is on course to achieve operating expenses of $26-$28 per barrel. Shares leapt more than 5% to 20p.
In small-caps, after more than six months suspended, shares in Challenger Acquisitions (LON:CHAL) began trading again earlier this morning.
The decision to put the stock on hold followed the unveiling of two acquisitions that triggered the market’s arcane reverse takeover rules. Shares rocketed 30%, or 11p, to almost 50p.
Elsewhere, stockbroker Cenkos (LON:CNKS) has denied providing any material to the Serious Fraud Office in relation to an investigation into scandal-hit claims outsourcer Quindell. Shares jumped 14% to 168p.
Conversely, Indian-focused gold explorer Kolar Gold (LON:KGLD) dropped 30% to 0.7p as it said its chief executive had quit and said it was considering options including selling or winding up the company.
MORNING REPORT
The morning session picked up where it left off last night for the UK’s main index, with miners languishing at the bottom of the index.
An 8.7% and 6.8% drop in Chinese imports and exports for the month of November caused the Shanghai Composite to fall to fresh 3 week lows during the Asian session.
Connor Campbell, at spread-betting firm Spreadex, said: “Barring the Asian indices themselves the miners appeared to be the worst hit by this latest piece of dreary data, the likes of Rio Tinto (LON:RIO) and BHP Billiton (LON:BLT) plunging to 6 and 10 year nadirs respectively.”
BHP was the biggest loser, easing 5.1%, or 39p, to 725p while Rio Tinto lost around 3.8% to 1,986p.
On the corporate front, Anglo American (LON:AAL) is scrapping its dividend for the first time in six years as part of a range of cost-cutting measures to combat weak commodity prices.
The platinum miner has suspended its pay-outs for the second half of this year and for 2016 it revealed in a statement on Tuesday. Shares fell 3.7%, or 13p, to 358p.
The miners contributed to a 9 point fall for the FTSE100, which stood at 6,214 around 9am.
It wasn’t all bad on the index, however, as the supermarkets rose after an upgrade from HSBC.
Despite not being in the index anymore, an upgrade for Morrisons (LON:MRW), to ‘hold’ from ‘reduce’ by the broker did the trick for the remaining FTSE100 supermarkets.
Shares in Morrisons gained 1.6% to 148p, while rival chain Sainsbury’s (LON:SBRY) was the top riser, climbing 3.6% to 250p.
In the small cap space, After more than six months suspended, shares in Challenger Acquisitions (LON:CHAL) began trading again earlier this morning.
The decision to put the quote on hold followed the unveiling of two acquisitions that triggered the market’s arcane reverse takeover rules. Shares rocketed 26.3%, or 10p, to 48p.
Elsewhere, Motive Television (LON:MTV) said discussions over extending the repayment deadline on its convertible loan notes (CLNs) are now at an advanced stage. Shares jumped 20% to 0.02p.
Conversely, domain name specialist CentralNic (LON:CNIC) found itself as one of the day’s biggest fallers, down 22.6% to 44p.
The firm has unveiled a transformational deal to acquire an Aussie rival for almost £16mln (A$33mln). It is buying privately-owned Instra Group, funded in part from a £10mln placing of stock with investors at 40p a share.
Also lower was Model railway maker Hornby (LON:HRN), which chugged into the red in the first half but said it was doing well in the run-up to Christmas. Shares lost around 5% to 90p.