AIMS AMP Capital Industrial REIT launched an equity raising via a private placement to raise at least S$50 million in gross proceeds.
The company will issue between 37,175,000 and 38,314,000 new units, with the price range set at S$1.305 and S$1.345 per unit, representing a discount of between 4.1% and 6.9% to the trust's Nov. 21 volume weighted average price of S$1.402 per unit.
Expected issuance of the new units is Dec. 1, with proceeds to be used to partially repay the company's existing debt and to pay the balances on its recent projects.
Maybank Kim Eng Securities Pte. Ltd. is the sole book runner and underwriter for the issuance.
Pursuant to the private placement, AIMS AMP Capital will make a cumulative advanced distribution to unit holders for the periods covering April 1 to Sept. 30 and Oct. 1 to Nov. 30. The advanced payout will be made to ensure that that accrued distributable income is fairly distributed in respect to the existing units. Unit holders as of Nov. 30, 5 p.m. Singapore time, will be entitled to the advanced distribution, which will be paid out Jan. 17, 2018. The distribution's per-unit price is estimated at 1.91 cents.
As of Nov. 21, US$1 was equivalent to S$1.35.