Following the issuing of 244,681,000 private placement units in Frasers Centrepoint Trust (FCT), which raised gross proceeds of some $575.0 million, FCT’s manager announced on Oct 7 that it will be using some $405 million for its credit facilities and bank loans.
See: Frasers Centrepoint Trust raises $575 mil in private placement following announcement
About $325.0 million from the gross proceeds will be used for FCT’s revolving credit facilities, pending the deployment of the proceeds of the equity fund raising to fund the ARF purchase acquisition.
Another $80.0 million has been utilised to repay a secured bank loan, according to FCT.
According to the manager, the use of these proceeds is “in accordance with the stated use" and is “materially in accordance” with the allocated percentage of the gross proceeds of the equity fund raising.
The balance of the gross proceeds has also been used to pay the professional and other fees and expenses incurred in connection with the private placement, and for placement in fixed deposits.
Units in FCT closed 2 cents lower, or 0.8% down, at $2.36 on Oct 7.
