Seven West Media Limited (ASX:SWM) shares were placed in a trading halt today as it announced a capital raising of about $440 million.

The media company says the funds will be used to pay down debt. Seven West will sell shares at $1.32 each which is a 19 per cent discount to its closing price on Friday.

An institutional entitlement offer is expected to raise about $270 million of the full amount with the remainder to be offered to retail investors.

Kerry Stokes owned Seven Group Holdings (ASX:SVW) and Kohlberg Kravis Roberts have committed to exercise their full entitlements and underwrite the remainder of the offer.

 

In the first half of the 2012 financial year, Seven West generated a net profit of $163 million.