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Manulife US REIT prices private placement at $0.89 per unit

Singapore Business Review logo Singapore Business Review 1/12/2021 Staff Reporter
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The price of Manulife US Reit’s private placement closed at $0.89 (​​US$0.649) per new unit, which is on the lower end of their set price range.

The price represents a discount of 8.9%  to the volume-weighted average price (VWAP) of US$0.7124 per unit of all trades in the units on SGX-ST for Market Day 1 on 29 November 2021, and 5.9% to the adjusted VWAP of US$0.6898 per unit.

In a bourse filing, the manager of Manulife US REIT said 154.1 million new units will be issued under the private placement.

The new units will be issued and commence trading on the SGX-ST on or around 9 December 2021.

The private placement is expected to raise gross proceeds of $109.167m (US$80.0m).

The manager, together with DBS Bank Ltd. and Oversea-Chinese Banking Corporation Limited which were appointed as joint lead managers and underwriters, can upsize the private placement by up to 30.8 million new units, which would then raise an additional $27.29m (US$20m) in gross proceeds.

From the total amount raised, 92.4% or approximately $100.85m (US$73.9m) will be used to finance the REIT’s accusations in Phoenix, Arizona, and Portland, Oregon in the US.

If the acquisition will not proceed for whatever reason, the REIT’s manager said it may utilise the net proceeds of the private placement for other purposes, including and without limitation, future acquisitions, the repayment of existing indebtedness, and for funding capital expenditures or other general corporate and/or working capital purposes. 

Meanwhile,  7.6% of gross proceeds, or $8.32m (US$6.1m), will be used to pay the estimated fees and expenses, including professional fees and expenses, incurred or to be incurred by Manulife US REIT in connection with the Acquisitions and the private placement.

IF there will be a remaining balance from the gross process, the REIT’s manager said it will be used for general corporate and/or working capital purposes.

1 SGD = 0.73 USD

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