CMT

CMT: placed 125m new units via a private placement at issue price of $2.00/unit, 5.2% below last close at $2.11. The private placement has been oversubscribed and the no. of new units to be issued was upsized from the previous 100.5m guidance due to positive mkt demand from more than 60 existing and new institutional investors from Asia, US and Europe. Gross proceeds of $250m will be primarily used to finance capex and asset enhancement initiatives of CMT properties, refinancing of existing debts of CMT and/or working capital. Assuming the net proceeds will be used to repay existing debts, CMT’s aggregate leverage is expected to be reduced from 37.7% to 35.1%. In conjunction, there will be an advanced distribution for the period from 1 Oct ’12 to the day immediately prior to the issue of new units (est. 30 Nov ’12). CMT est the adv distribution will be btwn 1.5-1.6 cts. JPM was the lead manager of this deal.