CACHE LOGISTICS TRUST
K2LU.SI
Cache Logistics Trust: Raised S$100m from a private placement
- Cache Logistics Trust (CACHE) announced that it has successfully raised gross proceeds of S$100m from a private placement exercise with the issuance of 106.27m new units at an issue price of S$0.941. The latter comes in at the lower end of its indicative issue price range of S$0.941-S$0.96 announced yesterday.
- The net proceeds would primarily be used to repay its existing debt (~S$60m) and to fund potential acquisitions in Australia (~S$37m). Any balance of the net proceeds would be used for general corporate and working capital purposes.
- The new units to be issued represent 13.5% of CACHE's existing units in issue prior to the placement.
- According to CACHE, its pro forma aggregate leverage would be lowered from 39.7% to approximately 35.2% as a result of this exercise.
- Our DPU forecast for FY16 would be cut by 9.7% if we input a larger unit base and lower finance costs but without factoring in any potential acquisitions.
- Consequently, our fair value would be reduced from S$1.00 to S$0.91 from the dilution.
- Maintain HOLD.
Wong Teck Ching Andy
OCBC Securities
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http://www.ocbcresearch.com/
2015-11-04
OCBC Securities
SGX Stock
Analyst Report
0.91
Same
1.00
