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.

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