Mapletree Industrial Trust’s private placement of 190.3 million new units is 3.1 times hedged
SINGAPORE (BUSINESS TIMES) – The private placement of 190.3 million new units by Mapletree Industrial Trust (MIT) has been hedged approximately 3.1 times, its manager announced on Friday (May 21).
The issue price was set at $ 2.696 per new unit, the high end of the price range. This represents a 2.3% discount from the Volume Weighted Average Price (VWAP) of $ 2.7596 per unit for trades made on Wednesday, the last trading day before the subscription contract is signed.
The new units resulting from the private placement are expected to be issued around June 1.
Meanwhile, the issue price of MIT’s non-waivable preferential offer has been set at $ 2.64 per new unit. This is a 4.3% reduction from the trust’s VWAP of $ 2.7596 per unit for trades made on Wednesday.
117.6 million additional new units will be issued under the preferential offer at an allocation ratio of five new units per 100 existing units.
Total gross proceeds from the equity fundraiser will be approximately $ 823.3 million, the manager said, comprising $ 512.9 million from the private placement and $ 310.4 million from the preferential offering. .
Approximately 88.2% or $ 726.5 million of the total gross proceeds will be used to partially fund MIT’s planned acquisition of $ 1.32 billion ($ 1.76 billion) of 29 data centers in the United States, announced Thursday.
Another 7.6 percent of the gross proceeds or $ 62.2 million will be used to pay off MIT’s debt.
The remainder will be used for fees and expenses incurred in raising funds, as well as for financing future acquisitions or for general working capital purposes.
DBS Bank, OCBC Bank, Merrill Lynch (Singapore) and UBS Singapore branch were the global coordinators and joint bookkeepers for the fundraising.
To ensure fairness to existing unitholders of MIT, an early distribution will be paid for the period of April 1 immediately prior to the issuance of the investment units. This is to ensure that distributions for the period are only intended for existing unitholders.
The amount of the distribution is estimated between 2.11 Singapore cents and 2.31 Singapore cents. The MIT director said he would make a further announcement on the actual quantum of advanced distribution in due course.
MIT shares were trading down 0.36% to $ 2.75 at 11:16 a.m. on Friday.