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Tue, September 29, 2020 – 8:56 am
The private placement of FRASERS Centrepoint Trust (FCT) has closed approximately 2.8 times the subscription and the price is at the lower end of the range, without the extension option being exercised.
It raised gross revenue of S $ 575 million at an issue price of S $ 2.35 per new unit, the manager of the real estate investment trust (Reit) said in a stock market presentation on Tuesday before the market opened.
The issue price represents a 6.6 percent discount over the volume weighted average price (VWAP) of S $ 2.5171 based on all transactions in FCT units on September 25 through the time the agreement was signed. subscription on September 28.
For illustrative purposes only, the issue price is 4.9 per cent discounted to the adjusted VWAP of 2.4723 Singaporean dollars per unit, which subtracts the aggregate distribution of approximately 4.485 Singapore cents per unit.
The indicative price range for the private placement was between S $ 2.35 and S $ 2.435 per new unit. There was also an expansion option to issue additional units, which would have increased the total gross proceeds of the placement to around S $ 675 million.
The placement “attracted strong demand from new and existing institutional investors and other accredited investors,” the manager said Tuesday.
The administrator announced on Monday afternoon a capital fund raising that includes a private placement and an inalienable preferential offer.
For the preferential offer, the issue price was also set at the lower end of its range, at S $ 2.34 per new unit. This is discounted by 7 percent over the VWAP and, for illustrative purposes, a 5.3 percent discount over the adjusted VWAP.
The indicative price range had been S $ 2.34 to S $ 2.42 per unit for the offer.
On Tuesday, the manager said the preferential offer is expected to raise around S $ 759.7 million.
Around 324.6 million new units will be issued, based on 290 preferential offering units for every 1,000 existing units held at 5pm on October 6.
In addition, around 244.7 million new units will be issued under the private placement.
DISTRIBUTIONS
In relation to the private placement, the administrator plans to declare, with respect to the existing FCT units, a cumulative distribution for the period between April 1, 2020 and the date immediately prior to the issuance of the new units under the placement. . The private placement units are expected to be issued around October 7.
Additionally, the manager will declare a distribution of Reit’s distributable income that was previously withheld for the periods October 1, 2019 through December 31, 2019 and January 1, 2020 through March 31, 2020.
Therefore, the aggregate distribution is estimated to be 4,485 Singapore cents per existing unit. This is made up of the cumulative distribution of approximately 2,804 cents and the withheld distribution of approximately 1,681 cents.
The manager said he will announce the actual amount of the added distribution in due course.
Assuming the prime offering is fully subscribed, gross proceeds from the capital fundraising will total about S $ 1.33 billion. This will comprise more than 45 percent of FCT’s current market capitalization, said Richard Ng, CEO of Reit’s manager.
Approximately S $ 76.3 per cent or 1.02 billion of gross proceeds will finance FCT’s acquisition of the rest of the Asia Retail Fund, while S $ 21.3 per cent or 284.9 million will go to reduce existing debts.
FCT units closed at S $ 2.52 on Friday, before the manager called for a halt on Monday morning. On Tuesday, the manager asked to raise the halt.
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