Frasers Centrepoint Trust uses private placement proceeds to pare down revolving credit facilities

OVER half of Frasers Centrepoint Trust's gross proceeds raised from its private placement has been allocated to temporarily pare down its revolving credit facilities, the real estate investment trust's (Reit) manager said in a bourse filing on Wednesday.

The deployment of the proceeds to fund the acquisition of AsiaRetail Fund (ARF) is pending. The Reit had announced last month its plan to buy the remaining 63.1 per cent stake in ARF for S$1.06 billion.

The private placement raised gross proceeds of S$575 million at an issue price of S$2.35 per new unit. Some S$325.0 million went into paring down revolving credit facilities; S$80.0 million was allocated to repaying a secured bank loan.

The balance has been used to pay the professional and other fees and expenses incurred from the private placement, and, pending the deployment of proceeds to fund the ARF Purchase, will be placed in fixed deposits.

Units of FCT closed on Wednesday at S$2.36, down S$0.02 or 0.8 per cent.