Keppel Infrastructure Trust (KIT) A7RU is seeking to raise $240 million via a private placement and preferential offering.
Its unitholders had approved the resolutions to issue new units in KIT via these means at the trust’s extraordinary general meeting (EGM) on April 17.
On April 18, KIT announced that it seeks to raise around $125.0 million via a private placement of between 262.1 million and 269.4 million new units to institutional and other investors. Each placement unit has an issue price range of between 46.4 cents and 47.7 cents. The private placement seeks to raise $125 million in gross proceeds.
The trust also intends to hold a non-renounceable preferential offering of up to 249.6 million new units at an issue price of between 46.4 cents and 46.7 cents to entitled unitholders. The preferential offering seeks to raise $115 million in gross proceeds.
The total number of placement and preferential offering units will not exceed 758.8 million in new units, or 15.2% of units in KIT in issue as at April 18.
Keppel Infrastructure Holdings, which has an 18.2% stake in KIT, has irrevocably undertaken to KIT’s trustee-manager that it will subscribe and pay for a number of placement units such that it maintains its stake following the placement. It will also subscribe and pay for its provisional allotments of preferential offering units under the preferential offering.
See also: Sembcorp issues $350 mil of guaranteed notes due 2036 at 3.65%
The issue price of both the placement units and preferential offering units will be determined by the joint lead managers, bookrunners and underwriters following a book-building process.
Citigroup Global Markets Singapore, DBS Bank, The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch (HSBC), Oversea-Chinese Banking Corporation Limited (OCBC) and United Overseas Bank (UOB) have been appointed as the joint lead managers, bookrunners and underwriters for the equity fund raising.
Under the management and underwriting agreement entered into between the banks and KIT’s trustee-manager, the joint lead managers, bookrunners and underwriters have also agreed to procure subscribers for the placement and preferential offering units or subscribe and pay for the units themselves should they fail to procure any subscribers.
According to KIT, the proceeds from the equity fund raising will partially repay the bridge facilities that funded the spate of acquisitions that KIT made from July to September 2022.
On the back of the equity fund raising, KIT’s trustee-manager intends to declare an advanced distribution from Jan 1 to the date of issue of the placement units. According to the trustee-manager, the quantum of distribution under the stub distribution will be 1.24 cents per unit.
The placement will close on April 19. The last day of cum trading for the stub distribution and preferential offering is on April 24. The placement units are expected to be traded on April 27.
Units in KIT last traded at 51.5 cents before its trading halt this morning.
