THE trustee-manager of Keppel Infrastructure Trust (KIT) has proposed a private placement to raise gross proceeds of no less than S$200 million at an estimated issue price range of between S$0.426 and S$0.438 per new unit.
On Tuesday (Aug 27), the trustee-manager said this price range represents a discount of between about 6 and 8.6 per cent to the volume-weighted average price (VWAP) of S$0.4662 per unit on the preceding market day.
For illustrative purposes, the price range represents a discount of between about 4.6 and 7.2 per cent to the adjusted VWAP of S$0.4592 per unit. This is based on trades done on the preceding market day, and excludes the stub distribution of S$0.007 per unit.
About 96.6 per cent, or S$193.2 million, of the proceeds will be used to partially repay S$391.8 million drawn down from a term loan facility of S$400 million. This was used to fund the acquisition of Australia’s Ventura Motors, which was completed in June.
About S$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.
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On Aug 2, the manager issued S$200 million perpetual securities at 4.9 per cent, under its S$2 billion multicurrency debt issuance programme. As at Tuesday, the manager paid down about S$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 Jul 1 to the date of issue of the placement units. The quantum of distribution is S$0.007 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 this year and KIT held the acquired interests through to Jun 30, pro forma distribution per unit (DPU) for H1 FY2024 would stand at S$0.0203, which is 4.1 per cent higher than its actual DPU of S$0.0195.
FY2023 DPU would stand at S$0.0409 based on pro forma calculations, which is 6 per cent higher than its actual DPU of S$0.0386.
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 Tuesday.
Units of KIT closed flat at S$0.465 on Monday.
