MAPLETREE Industrial Trust (MIT) looks to raise at least S$350 million through a private placement to partially fund its joint purchase of a North American data centre portfolio worth US$1.37 billion, which the trust said would cost it about S$965 million.
It is issuing 158.3 million new units at an issue price of S$2.211 to S$2.265 per unit, with an upsize option to issue up to 22.6 million new units that would raise at least another S$50 million.
An issue price of S$2.211 represents a discount of about 5 per cent to the volume-weighted average price of S$2.3278 of all trades done on Sept 16, the day before the placement agreement was signed, whereas an issue price of S$2.265 at the highest end of the range represents a 2.7 per cent discount.
MIT’s manager, Mapletree Industrial Trust Management Ltd, will declare an advanced distribution for current unitholders for the period of July 1, 2019 to the day before the new private placement units are issued.
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The advanced distribution per unit (DPU) is estimated to be between 2.91 and 2.95 Singapore cents. In July, MIT declared a DPU of 3.10 Singapore cents for its fiscal first quarter.
The private placement will launch on Sept 17, with book closure date for entitlement to the advanced distribution being Sept 25.
The new units will be listed on Sept 26, 9am.
MIT is in a joint venture with Mapletree Investments Pte Ltd to acquire 10 powered shell data centres and co-invest in three turnkey data centres in North America.
Beyond partially paying for this acquisition, about S$5.6 million of the gross proceeds will be used for the private placement’s fees.
MIT’s units closed flat at S$2.330 on Monday, before it called for a trading halt on Tuesday morning prior to this announcement.