The manager of Ascendas REIT is seeking to raise $420.0 million through a proposed private placement of new units in the REIT at an issue price of between $2.944 and $3.019 per unit.
The manager, along with Citigroup Global Markets Singapore (Citi) and DBS Bank, have entered into a placement agreement on May 4 in relation to the private placement.
Citi and DBS are the joint lead managers and underwriters of the placement.
Under the placement agreement, the manager, as well as Citi and DBS have agreed to procure subscriptions for or place out, where applicable, to subscribe and pay for the new units.
The issue price range represents a discount of between 2.8% and 5.2% to the volume weighted average price (VWAP) of $3.1062 per unit for trades in the units done on May 4.
It also represents a discount of 1.0% and 3.5% to the adjusted VWAP of $3.0499 per unit.
The issue price will be determined by the manager and the joint lead managers and underwriters, and will be announced in due course.
The manager says it intends to use $240.1 million of the gross proceeds to partly fund the acquisition of the 75% balance stake in Galaxis.
See: Ascendas REIT to acquire remaining 75% stake in Galaxis for $534.4 mil
Another $173.4 million will go towards repaying debt, enabling the REIT to reduce its aggregate leverage from 38.0% to 37.0%.
Some $6.5 million of the proceeds will pay the estimated fees and expenses in connection with the private placement.
Units in A-REIT closed 2 cents higher or 0.6% up at $3.12 on May 4.
