Suntec – AmFraser

SUNTEC REIT RAISING $341M TO REPAY DEBT

Suntec Reit is issuing 218.1 million new units at $1.605 apiece in a private placement. The move will increase the unit base by 9.7 per cent, and could dilute distributions per unit by 3.9‐8.4 per cent from FY14 to FY16.

Suntec Reit said the issue is likely to reduce its gearing from 38 percent to 33.8 per cent. Its aggregate leverage will also improve from 39.1 to 35 per cent. Noting that the issuance will improve capital structure and credit profile, it added that the fund‐raising exercise will “provide Suntec Reit with greater financial capacity and competitive advantage to capitalise on potential growth opportunities”.

The issue price per unit, a