Mapletree Logistics Trust’s manager said on Thursday that it planned a private placement of 303.889 million to 313.545 million new units at an issue price of S$1.196 to S$1.234 each to raise gross proceeds of up to S$475 million, including an upsize option.
The issue price range is a discount of around 2.5 percent to 5.5 percent to the volume weighted average price of S$1.2651 per unit on 19 September, it said.
A bookbuilding process by the manager and the joint global coordinators and bookrunners will set the issue price, it said.
The joint global coordinators and bookrunners are Citigroup Global Markets Singapore, DBS Bank, HSBC’s Singapore branch, BNP Paribas’ Singapore branch and Goldman Sachs (Singapore), it said.
The proceeds are earmarked for the cost of acquiring five logistics properties in Singapore, a deal which was announced early in July, it said.
If the full proceeds of S$475.0 million are raised, the trust’s manager intends to use around S$391.5 million, or 82.4 percent of the gross proceeds, to partially fund the consideration of S$730.0 million for the acquisition, the filing said.
Another S$83.5 million was earmarked to partially pay the estimated upfront land premium payable to JTC Corp., as well as estimated stamp duties and other fees that Mapletree Logistics Trust may incur in connection with the acquisition and the private placement, it said.
The total acquisition cost will be financed by a combination of the private placement proceeds and a drawdown of Mapletree Logistics Trust’s existing credit facilities, it said.
The manager said it was using the combination to provide overall distribution per unit accretion on a pro forma basis, while maintaining a well-balanced capital structure.
On the day immediately prior to the issue date for the new units, the manager intends to declare an advanced distribution for existing unitholders for the 1 July to 30 September period, which it estimated to be 1.880 Singapore cents to 1.90 Singapore cents, based on prorating the expected total amount, it said.
The new units are expected to be issued on or around 28 September, it said.
Clarification: In a filing to SGX after the market close on Thursday, Mapletree Logistics Trust corrected its statements on the size of the consideration for the logistics properties’ acquisition and that the proceeds would only partially pay the upfront land premium. This article has been updated to reflect those changes.