Monday, September 1, 2014

CroesusRetail Trust Private Placement

CRT yesterday announcement a private placement of 78,900,000 units fixed at a price of 0.915 cents.It will raise $72.2m with net proceeds of about $70.2m after deduction of underwriting, selling and other related fees associated with this placement.The placement price is at a discount of 8.5% over the average volume weighted price of 0.995 cents just prior announcement.It is at a 3.2% discount over the adjusted volume weighted average price of 0.9455 cents after taking into consideration of dividend of 5.4 cents payable in Sept 2014. The dividend include the portion from 1 July 2014 to the day just prior issue of placement.

About $62.2m of the net proceeds will be used to partially fund the purchase of One's Mall.After acquisition of One's Mall, DPS  will be at 9 cents with NAV at 75.16 cents.Aggregate leverage will be at 50.5%.

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