Keppel Infrastructure Trust proposes private placement to raise at least $200 million
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Most of the proceeds will be used to partially repay a loan facility used for the acquisition of Australia’s Ventura Motors.
PHOTO: REUTERS
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SINGAPORE - The trustee-manager of Keppel Infrastructure Trust (KIT) has proposed a private placement to raise gross proceeds of no less than $200 million, at an estimated issue price range of between 42.6 cents and 43.8 cents per new unit.
On Aug 27, the trustee-manager said this price range represents a discount of between about 6 per cent and 8.6 per cent to the volume-weighted average price (VWAP) of 46.62 cents per unit on the preceding market day.
For illustrative purposes, the price range represents a discount of between about 4.6 per cent and 7.2 per cent to the adjusted VWAP of 45.92 cents per unit. This is based on trades done on the preceding market day, and excludes the stub distribution of 0.7 cent per unit.
About 96.6 per cent, or $193.2 million, of the proceeds will be used to partially repay $391.8 million drawn down from a term loan facility of $400 million. This was used to fund the acquisition of Australia’s Ventura Motors, which was completed in June.
About $5.4 million – equivalent to 2.7 per cent – of the proceeds will be used for the payment of fees and expenses of the placement.
The remaining proceeds will be used to repay existing debts.
On Aug 2, the trustee-manager issued $200 million perpetual securities at 4.9 per cent, under its $2 billion multi-currency debt issuance programme. As at Aug 27, it paid down about $198.6 million of the term loan facility. It aims to repay the remaining amount with the proceeds of the private placement.
The trustee-manager will declare an advanced distribution for the period from and including July 1 to the date of issue of the placement units. The quantum of distribution is 0.7 cent per unit.
Holders of the placement units will not be entitled to the stub distribution.
If the acquisition, issue of perpetual securities and placement had been completed on Jan 1, 2024, and KIT held the acquired interests through to June 30, pro forma distribution per unit (DPU) for the first half of financial year 2024 would stand at 2.03 cents, which is 4.1 per cent higher than its actual DPU of 1.95 cents.
The placement is expected to close on Aug 28 with the issue price to be announced on the same date.
The trustee-manager requested a trading halt before the market opened on Aug 27. Units of KIT closed flat at 46.5 cents on Aug 26. THE BUSINESS TIMES
