Manulife US REIT private placement prices at top of range on strong demand

U.S. two-dollar billsPhoto by Leslie Shaffer

Manulife US REIT priced its private placement of new units at US$0.876 each, the top of its US$0.849 to US$0.876 indicative range, as strong demand saw the offering more than seven times covered, the REIT said in a filing to SGX Friday.

The upsize option was triggered, boosting the number of shares in the placement to around 94.2 million new units, to raise US$80 million, the filing said.

The pricing was a 3.6 percent discount to the volume weighted average price of US$0.9089 a unit for Wednesday, Manulife US REIT, or MUST, said.

The offering was part of an equity fundraising, comprising a private placement and a preferential offering, to partially finance an acquisition. The REIT said Thursday it had entered a deal to acquire the Class-A office building in Sacramento, California, from 400 Capitol Mall Owner for around US$198.8 million.

The preferential offering was priced at US$0.860 each, on the basis of 52 new units for every 1,000 existing units, raising US$62.7 million, MUST said.

The pricing was at the top of its US$0.833 to US$0.86 range, and it represented a discount of 5.4 percent to the unit’s volume weighted average price on Wednesday, the filing said.

That would bring the total proceeds from the offering to US$142.7 million, the filing said.

While you’re here, we’re hoping you can help us out.

Shenton Wire has been providing you with quick news and market analysis. But we need your support to continue to bring you the news you’ve come to expect and to expand our reach beyond Singapore.

Your monthly contribution will directly fund our journalism.

S$2     S$4       S$8

S$18       S$28       S$88

We also accept PayPal contributions

Check your existing account here and sign in to Shenton Wire here.

Contact us about other contribution levels or for corporate subscriptions and article syndication.