Ascott Reit to raise $253.7m in rights issue
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ASCOTT Residence Trust has launched an underwritten renounceable rights issue to raise about $253.7 million, with existing unitholders being offered 253.7 million rights units at a ratio of one unit for every five already held, as at the book closure date.
The rights units are being issued at $1 each, which represents a discount of about 22.5 per cent to yesterday's closing of $1.29 per unit. It is also a 23.7 per cent discount to Ascott Reit's pro-forma net asset value per unit of $1.31, and a discount of about 19.5 per cent to the theoretical ex-rights price.
About 80.8 per cent of gross proceeds from the issue will be used to pay down debt and 17.7 per cent will be used to fund capital expenditure and asset enhancement initiatives.
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