Regional Reit (RGL ) shares have plunged to a new low after the office specialist confirmed a report it was considering a highly discounted rights share issue to repay its £50m retail bond maturing in August.

Shares that had already tumbled to a 72% discount to net asset value over refinancing fears, slid another 6.4p, or 31%, to 13.8p in early trading as the company noted a report in React News that it was considering an £75m fund raise.

‘As indicated in the previous announcements, the company is actively exploring a range of refinancing options, including debt and/or equity, in respect of the existing £50m retail bond given its maturity date in August 2024,’ it said.  

‘The company confirms that significant preparatory work has been undertaken to date in respect of both the debt and equity options, which remain under active consideration,’ it stated.

‘In the event that the company proceeds with an equity issue, the company expects that it would be at a material discount to the company’s current share price and would be subject to, amongst other things, shareholder approval,’ it added.