Gross proceeds from the private placement will be used to part finance CICT's proposed acquisition of Paragon (Picture: Samuel Isaac Chua/EdgeProp Singapore)
CapitaLand Integrated Commercial Trust (CICT) has closed book orders for the private placement it launched on April 20 to partly finance its proposed acquisition of Orchard Road development Paragon for $3.9 billion.
Strong demand led to the private placement being upsized from the $600 million it was originally targeting to approximately $750 million, CICT said in an April 21 bourse filing. The upsized private placement was covered approximately 4.8 times, it adds.
Around 326.1 million new units will be issued at $2.30 per unit, raising gross proceeds of about $750 million. The issue price represents a discount of 2.4% to the adjusted volume-weighted average price (VWAP) of CICT units as of April 17, and a discount of 4% to the unadjusted VWAP.
Approximately $740.4 million of the gross proceeds will be used to part-finance CICT’s acquisition of Paragon, while $9.6 million will be used to pay estimated transaction expenses incurred by CICT in connection with the private placement.
The remainder of the Paragon acquisition will be funded through a combination of debt and proceeds from CICT’s sale of Asia Square Tower 2 for $2.48 billion.