The non-renounceable preferential offering will be offered to the REIT’s unitholders on a pro rata basis. Its issue price, which is based on a discount of 0.5 cents to the private placement issue price, represents a discount of 5.77% and 7.20% to the VWAP of 35.02 cents per E-LOG unit.
The private placement and preferential offering will raise some $150.0 million each.
According to E-LOG, the proceeds raised will be used for the funding of any potential acquisitions, redevelopments and asset enhancement initiatives (AEIs) of the properties owned by E-LOG.
The equity fundraising will also lower the REIT’s aggregate leverage to 38.0% from 41.8% as at Dec 31, 2022. It will also increase the REIT’s debt headroom to $1.1 billion based on a 45% aggregate leverage limit.
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On a pro forma basis, the REIT’s net asset value (NAV) per unit will drop to 35.9 cents from 36.4 cents before the equity fund raising.
Undertaking
ESR Group Limited, through its wholly-owned subsidiary e-Shang Infinity Cayman Limited, has irrevocably undertaken to the REIT manager that it will procure the provisional allotments of the preferential offering units corresponding to its direct interest in E-LOG in full. E-Shang Infinity has 530.9 million units or 7.89% of E-LOG’s total units. The total number of preferential offering units applied for by e-Shang Infinity does not exceed $95.0 million.
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At the same time, LOGOS Property Group, through its wholly-owned subsidiary LOGOS Units No. 1, has irrevocably undertaken to the REIT manager that it will pay for LOGOS Units No. 1’s total provisional allotments of the preferential offering units corresponding to its direct interest in E-LOG in full.
LOGOS Units No. 1 has 333.5 million units, or 4.96% of the total units in E-LOG as at Feb 16. The total number of preferential offering units applied for by LOGOS Units No. 1 does not exceed $55.0 million.
e-Shang Infinity and LOGOS Units No. 1 will rank last in the allocation of excess preferential offering units, says the REIT manager.
The REIT manager, Citigroup Global Markets Singapore, DBS Bank and United Overseas Bank (UOB) are the joint bookrunners and underwriters for the private placement.
Units in E-LOG closed at 35 cents on Feb 15.
