SINGAPORE (June 23): Following the announcement of its acquisition, the manager of Mapletree Industrial Trust (MINT) stated on Tuesday that it has launched a proposed private placement of 128.1 new units to eligible institutional, accredited and other investors at an issue price of between $2.732 and $2.800 per new unit.
See: Mapletree Industrial Trust to acquire remaining 60% interest in 14 data centres in US for S299.5 mil
The new units are to raise gross proceeds of $350.0 million. The units are subject to an upsize option being exercised to issue up to 18.3 million additional new units to raise additional gross proceeds of some $50 million.
The issue price range represents a discount of some 5.0% and 2.6% respectively to the last-transacted volume average weighted price of $2.8745 per unit.
The manager of MINT also entered into a placement agreement with Citigroup Global Markets Singapore, DBS Bank, and The Hong Kong and Shanghai Banking Corporation (HSBC), who will be the joint bookrunners and underwriters.
Under the agreement, the joint bookrunners and underwriters will subscribe and pay for any unsubscribed new units or additional new units at the issue price.
The issue price will be determined by the manager and the joint bookrunners and underwriters.
The manager says it intends to use some $302.6 million to fully fund the proposed acquisition of the remaining 60% interest in the 14 data centres in the US.
It also intends to allocate some $41.8 million to repay MINT’s debt, fund future acquisitions, and another $5.6 million to pay the estimated fees and expenses incurred by the private placement.
According to the manager, should the gross proceeds exceed $350 million, the excess proceeds will be used towards debt repayment, as well as future acquisitions.
The proposed acquisition will be subject to the approval of MINT unitholders, which will be sought at an extraordinary general meeting (EGM).
The manager says that should the trust not proceed with the proposed acquisition, the proceeds of the private placement will be used to fund ongoing, as well as future investments, and pare down debt.
The new units will be listed on July 2, at 9am.
As at 9.01am, units in Mapletree Industrial Trust are trading flat at $2.84.
