Keppel Pacific Oak US REIT launches private placement to raise US$65M

U.S. one-dollar currency notes; taken September 2018.U.S. one-dollar currency notes; taken September 2018. Credit: Shenton Wire

Keppel Pacific Oak US REIT has launched a private placement of up to 90.28 million new units at US$0.72 to US$0.743 to raise US$65 million to fund two proposed acquisitions.

KORE plans to acquire two office buildings — Bridge Crossing in Nashville, Tennessee, and 105 Edgeview in Denver, Colorado — for a total of US$105.1 million from two unrelated sellers, the U.S.-focused REIT said in a filing to SGX Wednesday.

The price range is a discount of 6.6 percent to 9.5 percent of the volume weighted average price of US$0.7959 the unit traded at on Tuesday, KORE said in a separate filing to SGX Wednesday.

The private placement will be made to institutional, accredited and other investors, with the pricing set in a bookbuilding process, KORE said.

Shareholder approval is not required for the offering as the maximum number of new units to be issued around 9.6 percent of the base figure, within the 20 percent threshold for an approval, KORE said.

An advanced distribution of around 0.62 U.S. cents to 0.66 U.S. cents will be made to unitholders before the issue of the new units, KORE said.

The offering is fully underwritten by the joint bookrunners and underwriters, DBS Bank and UOB, the filing said.

In addition, KORE said Wednesday in a separate filing it has obtained 5.5-year term loan facility with a principal amount of US$120 million.