SINGAPORE - Mapletree Industrial Trust (MIT) is proposing a private placement of 90.44 million new units to raise gross proceeds of no less than about $175 million, which will mostly be used to partly refinance the acquisition of 18 Tai Seng Street, the Reit's manager announced in a Singapore Exchange filing on Monday night (Feb 11).

This is subject to an upsize option being exercised to issue up to 12.92 million additional new units, to raise additional gross proceeds of at least $25 million.

The new units will be placed to eligible institutional, accredited and other investors at an issue price of between $1.935 and $1.990 per new unit. The price range represents a discount of between 4.65 per cent and 1.94 per cent, respectively, to the volume-weighted average price of $2.0293 per unit of all trades on Feb 11.

The issue price will be determined by the Reit manager and DBS Bank - as the sole bookrunner and underwriter of the placement - following a book-building process, and will be announced thereafter via SGXNET.

Mapletree Industrial Trust intends to use about $172.1 million of the gross proceeds to partly refinance the acquisition of 18 Tai Seng Street, which was completed on Feb 1. The remaining $2.9 million will be used to pay the estimated fees and expenses incurred in connection with the placement. If the gross proceeds exceed $175.0 million, the excess will go towards refinancing the acquisition, debt repayment, future acquisitions and/or general corporate and working capital purposes.

The new units are expected to be issued on Feb 20. In connection with the placement, the Reit manager intends to declare an advanced distribution for existing units for the period from Jan 1 to the day before the new units are issued, currently estimated to be between 1.69 cents and 1.73 cents.

A further announcement on the actual quantum of the advanced distribution will be made in due course. Holders of the new units will not be entitled to this advanced distribution.