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Eagle Hospitality Trust prices IPO at US$0.78 per stapled security
THE manager of Eagle Hospitality Trust (EHT), a property trust backed by Los Angeles-based property investor and developer Urban Commons, has registered a prospectus for EHT's listing on the mainboard of the Singapore Exchange.
The offering price is US$0.78 per stapled security. A total of 580.6 million stapled securities are being offered, comprising an international placement of 535.7 million stapled securities to investors, including institutional and other investors in Singapore, and an offering of 44.9 million stapled securities to the public in Singapore.
EHT is a stapled group comprising Eagle Hospitality Real Estate Investment Trust (EH-Reit) and Eagle Hospitality Business Trust (EH-BT). It has an initial portfolio of 18 full-service hotel properties, with a total of 5,420 rooms and an aggregate valuation of about US$1.27 billion.
The assets span states such as California, Texas, Colorado, Utah, Georgia, Florida, New Jersey and Connecticut. Seventeen of the 18 assets are freehold.
The issuer has projected an annualised yield of 8.2 per cent for the period from May 1, 2019 to Dec 31, 2019.
Investors subscribing for stapled securities under the public offer will pay the offering price in Singapore dollars - that is, S$1.071 per stapled security, based on the exchange rate of US$1.00 to S$1.3731.
DBS Bank, DBS Bank on behalf of certain wealth management clients, Gold Pot Developments Limited and Ji Qi have come onboard as cornerstone investors, which will give them a collective stake of 16.7 per cent post-IPO.
The manager intends to raise gross proceeds of US$565.8 million, which will be used for payment to the vendors for the purchase price of the initial portfolio, payment of the related acquisition costs of the initial portfolio, payment of issue and debt-related costs, as well as working capital.
The sole financial adviser and issue manager for the offering is DBS Bank.
DBS, Merrill Lynch (Singapore), UBS AG, Singapore Branch, BNP Paribas, acting through its Singapore branch, Deutsche Bank AG, Singapore Branch and Jefferies Singapore Limited are the joint bookrunners and underwriters for the offering.