Manulife US Reit to raise US$197.2m from 22-for-100 preferential offering

SINGAPORE-listed Manulife US Reit has announced a preferential offering of 22 new units for every 100 held at US$0.865 per unit to raise some US$197.2 million. 

The issue price of US$0.865 represents a 7.9 per cent discount to the volume-weighted average price of US$0.9391 per unit for trades done on the Singapore bourse for the full market day on May 15. 

The deal, which includes about 228 million new non-renounceable units in Manulife US Reit, is underwritten by DBS Bank and CLSA Singapore, which are also the joint lead managers of the offering. In the event that the deal is not fully subscribed, the underwriters will subscribe and pay for the shortfall. 

Of the amount raised, about US$191.1 million or 96.9 per cent of the gross proceeds will be used to partially fund the proposed acquisitions by Manulife US Reit of the office building located at 1750 Pennsylvania Avenue NW, Washington DC; and the office building known as Phipps Tower located at 3438 Peachtree Road, Atlanta, Georgia. 

The balance will be used for expenses related to the preferential offering and working capital. 

The books closure date stands at 5pm on May 24.