CPA completes $100m placement
The manager of Commonwealth Property Office Fund (CPA), Colonial First State Property Limited, announced the completion of a $100 million institutional equity placement. The company also announced that it had raised $200 million in convertible notes to fund the acquisition of 145 Ann Street, Brisbane and a 50% interest in 58 Mounts Bay Road, Perth.
Colonial First State said the placement of approximately 109.9 million ordinary units at a price of $0.91 per CPA unit was completed on 23 November 2009, with the price reflecting a 5.1% discount to close on 20 November 2009 and a 6.3% discount to the 5-day volume weighted average price.
The company said all existing eligible unitholders in Australia and New Zealand would have the opportunity to acquire units under a proposed Unit Purchase Plan (“UPP”), at the same price as the units offered under the institutional equity placement.
Colonial First State said the $200 million in Notes were sold overnight primarily into the European and Asian markets.
The notes are to be issued by CPA with a fixed coupon rate of 5.25% per annum for a term of seven years and will rank as senior unsecured obligations of the Fund and are intended to be listed on the Singapore Stock Exchange.
Colonial First said prior to maturity, the notes are convertible into CPA units at a price of $1.1375 per unit, which reflects a premium of 25% to the Reference Price of $0.91.
As at 1035 AEDT, Commonwealth Property Office Fund shares were down 4c to 94.5c.
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