Following its announcement on the acquisition of 29 data centres in the US for a purchase consideration US$1.3 billion ($1.78 billion), Mapletree Industrial Trust (MINT) has launched an equity fund raise to raise gross proceeds of not less than $800 million.
In a filing to the Singapore Exchange (SGX), the manager of the REIT announced plans to issue new units via a private placement as well as a non-renounceable preferential offering to raise the targeted amount.
For the private placement, 190.3 million new units will be issued at a price between $2.63 and $2.70 per unit, amounting to total gross proceeds of around $500 million. The price range represents a discount between 2.3% - 4.8% to the volume-weighted average price (VWAP) of $2.76 per unit as of May 19.
For the preferential offering, 117.6 million new units will be issued to eligible unitholders at an issue price of between $2.57 and S$2.64 per unit, amounting to total gross proceeds of around $300 million. The new units will be issued on the basis of 5 new units for every 100 existing units. The price range represented a discount between 4.3% - 6.9% to VWAP.
SEE:Mapletree Industrial Trust acquires 29 data centres in the US for US$1.3 bil
Unitholders whose registered addresses with the Central Depository are outside Singapore will not be eligible for the preferential offering.
DBS Bank, Oversea-Chinese Banking Corporation, Merrill Lynch (Singapore) and UBS Singapore Branch have been appointed as the joint global co-ordinators and bookrunners.
Based on assumed gross proceeds of $803 million, the manager says that some $726.5 million will be used to partially finance the proposed acquisition, around $62.2 million will be used to repay MINT’s debt, and around $14.3 million will be used to pay fees and expenses incurred.
Gross proceeds raised exceeding $803 million will be used for funding future acquisitions and/or general corporate and working capital purposes.
Units in MINT closed flat at $2.76 on May 19 before trading was halted this morning.
