CDLH Trust proposed a private placement of btwn 85-117m (10-14% dilution) new units priced at btwn $1.71-1.77 (vs last done at $1.89). Mgt hopes to raise gross proceeds of ~$150m with upside option of additional $50m. Intends to use $116m to repay a bridging facility previously used to finance the acq of 5 Australian properties in 1Q10, and the remainder to partially repay a DBS loan facility comprising a term loan and revolving facility.
However mgt reserves the right to use the net proceeds for other purposes. Purpose of placement is to provide CDLH with greater debt headroom, financial capacity and competitive advantage to capitalize on potential growth opportunities, as leverage expected to drop from 30.9% to 22.7%. To give ~4.8c advanced distribution to current unit holders just before issue of new units, to ensure fairness. Closing of Transfer books and Register of unitholders on 30 Jun.
No comments:
Post a Comment