Britain's WH Smith launches 13.7% equity raise amid coronavirus crisis

(Reuters) - British retailer WH Smith <SMWH.L> said on Monday it was placing shares of about 13.7% of the company's ordinary share capital to get it through the coronavirus crisis.

Earlier in the day the company, which sells books, newspapers and stationery, said it had secured new lending facilities of 120 million pounds ($147.54 million) which are conditional on raising new equity.

Shares of WH Smith closed up 8.3% at 1094 pence.

The company, which continues to operate about 30% of its UK stores, said it expects its April revenue to fall by about 90% due to effects of the lockdown because of the coronavirus outbreak. It also expects a drop of 39 million pounds ($47.95 million) in operating profit for April.

WH Smith expects to reduce costs by around 60% by furloughing employees, holding off on dividend, and reducing stock purchases, among other actions. It is also reducing capital expenditure by around 29 million pounds.

Under a "pessimistic scenario", which assumes 95% of stores estates closed with gradual reopenings, WH Smith said revenue could fall between 80% and 85% from April to August-end.

(Reporting by James Davey in London and Aniruddha Ghosh in Bengaluru; Editing by Alison Williams and Shailesh Kuber)