CapitaLand Integrated Commercial Trust raising S$600 million in private placement
[SINGAPORE] CapitaLand Integrated Commercial Trust (CICT) on Wednesday (Aug 6) announced the launch of nearly 284.4 million new units to raise gross proceeds of around S$600 million, priced at S$2.11 apiece.
The issue price represents a discount of around 2.5 per cent to the adjusted volume-weighted average price (VWAP) of S$2.1637 per unit for trades done on Monday.
It also represents an approximate 5.5 per cent discount to the VWAP of S$2.2334 per unit, said the manager.
The private placement was about 4.9 times covered, when including the upsize option, and around 5.9 times covered, upon excluding the upsize option.
The joint bookrunners and underwriters agreed to raise additional gross proceeds of around S$100 million for the issue, such that the aggregate gross proceeds raised is about S$600 million as part of the upsize option.
Around S$125.9 million or 21 per cent of the gross proceeds will be used to repay and refinance debt and/or capital expenditure and asset enhancement initiatives. This is up from the S$26.3 million CICT announced on Tuesday.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Some S$7.6 million of the gross proceeds will also be allocated for the payment of transaction-related expenses, including professional fees and expenses related to the private placement. This is an increase from the S$7.2 million stated previously.
The S$466.5 million designated on Tuesday to finance the remaining 55 per cent interest in the office and retail component of CapitaSpring, located at 86 and 88 Market Street, remains the same.
Earlier on Tuesday, CICT’s manager provided a range of the issue price to be between S$2.105 and S$2.142 per new unit, and estimated gross proceeds of S$500 million to be raised.
DBS has been allocated 3.3 million new units under the private placement, and is a joint bookrunner and underwriter, along with Citigroup Global Markers Singapore and JPMorgan Securities Asia. According to the Singapore Exchange, no objections arise as long as the amount placed to DBS is no more than 25 per cent of the total new units under the private placement, and DBS does not own an interest of 5 per cent or more in CICT.
The trading of the new units is expected to commence at 9 am on Aug 14.
Units in CICT last traded at S$2.24. The manager announced on Wednesday morning that it will be lifting the trading halt it had put in place on Tuesday morning.
