Mirvac completes institutional placement
Mirvac Group (MGR) announced the successful completion of its $350 million Institutional Placement announced yesterday. The group said as a result it is now well positioned to fast track its existing commercial and residential development pipelines, and take advantage of new external opportunities in residential development and Australian investment grade real estate.
Mirvac said the placement was significantly oversubscribed with demand from both existing and new Australian and international institutional investors. As a result, the group said it was forced to scale back bids.
Mirvac said the funds were raised through the placement of 250 million Mirvac stapled securities at a fixed price of $1.40 per stapled security.
The group said the proceeds would reduce pro forma balance sheet gearing from 23.2% to 20.7%, increase liquidity to $1.4 billion and increase cash on hand to $400.3 million.
Mirvac also intends to offer eligible securityholders the opportunity to purchase stapled securities through a Security Purchase Plan (“SPP”) to raise up to $150 million at a price of $1.40 per stapled security.
The group said settlement is scheduled to take place on 13 April 2010, with new stapled securities expected to be issued and commence trading on ASX on 14 April 2010.
At the close of trade yesterday, Mirvac shares were trading at $1.48.
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