It has just announed a fully underwritten one-for-one accelerated non-renounceable pro-rata entitlement offer, and an underwritten institutional placement to raise the funds in order to lower its debts.

AWB also announced that it has reached agreement with its core banks to refinance its domestic corporate debt facilities, which were due to mature in October 2009, totalling $575 million.

AWB’s pro forma net corporate debt (domestic and offshore) following the equity raising is estimated to be $490 million as at 30 September 2009.

"The capital raising is being undertaken to strengthen AWB's balance sheet and to provide financial flexibility through the subsequent reduction in net debt," AWB managing director Gordon Davis said.

"AWB has a number of exciting opportunities in front of it.

"Today’s announcement will fundamentally reposition the company’s balance sheet for this journey.

"AWB’s directors and management fully support the refinancing, and recommend it to all shareholders."

The offer will be at a fixed price of $1.00 per share and will be comprised of $359 million 1 for 1 entitlement offer via approximately $115m via the institutional component of the entitlement offer and approximately $244m via the retail component of the entitlement offer; and $100m in institutional placement.

According to today's The Australian Financial Review, the deal, which was being put together by Deutsche Bank, Goldman Sachs JBWere and UBS, was expected to be a difficult one, given the volatile earnings, large retail shareholder base and chequered history of the company.

Nevertheless, it is raining in some parts of the country, and perhaps more importantly, investors are set to see some of their exposure to the agribusiness sector disappear after Viterra's takeover of ABB.

The company has been under pressure to lower its debt levels and has struggled to sell its half stake in the HiFert fertiliser business, which is half-owned by Elders. KPMG was handling that advisory role.