Slaughter and May is advising Mothercare plc (Mothercare) in relation to its fully underwritten 9 for 10 rights issue at a price of 125 pence per share, to raise approximately £100 million (Rights Issue).

Mothercare is seeking to raise approximately £100 million (£95 million net of expenses) in order to implement a new strategic plan designed to deliver the turnaround of the UK business and transform Mothercare into a digitally-led business, supported by a modern store estate, well-invested IT systems and an efficient operational infrastructure. The Rights Issue will also enable Mothercare to repay a significant amount of its outstanding debt.

The Rights Issue was announced on 23 September 2014 and is conditional on shareholder approval at a general meeting to be held in October 2014.

Slaughter and May is working as a team with Paul, Weiss, Rifkind, Wharton & Garrison LLP, who are advising Mothercare in relation to the US law aspects of the Rights Issue.

J.P. Morgan Cazenove and Numis Securities are acting as joint sponsors, joint corporate brokers and, together with HSBC, joint bookrunners.

CONTACTS

Corporate and Commercial: John Papanichola (partner), Gavin Brown (partner), Sarah Peazer (associate), Michael Binning (associate), Serena Kern-Libera (associate), Giles Rabbitts (associate), Andrew Smith (associate), Max Schofield (trainee), Jenny Buckley (trainee), Catriona Chau (trainee); Tax: Gareth Miles (partner); Pensions and Employment: Jonathan Fenn (partner)

Paul, Weiss, Rifkind, Wharton & Garrison LLP: Corporate: Mark Bergman (partner), John Satory (counsel), Yasmeen Rouben (associate)