Keppel Pacific Oak US REIT launches private placement to raise US$73 million

U.S. one-dollar currency notes; taken September 2018.U.S. one-dollar currency notes; taken September 2018.

Keppel Pacific Oak US REIT has launched a private placement of 104.29 million new units at US$0.701 to US$0.725 each to raise at least US$73.1 million, the REIT said in a filing to SGX Thursday.

The issue price is a 4.8 percent to 7.9 percent discount to the volume weighted average price of US$0.7615 for trades on Wednesday, KORE said, adding the issue price would be set after a bookbuilding process.

The offering will be made to institutional, accredited and other investors, KORE said.

The proceeds are earmarked to fund the acquisition of One Twenty Five, an office complex in Dallas, Texas, KORE said.

Keppel Capital Investments Holdings, which holds around 6.89 percent of KORE, will acquire up to 7.19 million on the new units to maintain a post-placement unitholding of up to 6.89 percent, the filing said.

KBS SOR Properties, which holds around 6.89 percent of KORE, will acquire between 7.19 million to 12.86 million new units to keep its post-placement stake of at least 6.89 percent or up to 7.5 percent, the filing said.

On the day before the new units are issued, KORE will declare an advanced distribution of between 1.91 U.S. cents and 1.99 U.S. cents, the filing said.

DBS Bank and Credit Suisse (Singapore) were appointed joint bookrunners and underwriters, the filing said.

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