21/06/2016 09:39 |
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PRICE SENSITIVE |
REL: 0939 HRS Vital Healthcare Property Trust |
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RIGHT: VHP: Vital announces $160m pro rata renounceable rights offer |
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Vital Healthcare Management Limited (the 'Manager'), the manager of Vital |
Healthcare Property Trust ('Vital'), today announced it intends to raise |
approximately $160m of new equity capital through a pro rata renounceable |
rights offer of new units to existing unitholders (the 'Offer'), with $120.6m |
underwritten by Forsyth Barr Group Limited. |
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Equity-raising to support ongoing delivery of scale and diversification |
strategy |
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David Carr, Chief Executive of the Manager said "Over the last five years |
Vital has consistently delivered strong operational, financial and portfolio |
results for investors. We have executed on the Board's scale and |
diversification strategy to support operator growth and new acquisition |
initiatives. Following the recently announced pipeline of new value-add |
projects and acquisition opportunities and supported by a strong unit price, |
the Board now considers it appropriate to seek further equity in this next |
exciting phase of growth. |
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As with previous capital raisings, the Board was keen to ensure the offer |
allows existing investors of Vital the opportunity to participate on an |
equitable basis. A pro rata renounceable rights offer gives investors that |
opportunity." |
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Vital intends to raise $160m of new equity through a 2-for-9 pro rata |
renounceable rights offer at an issue price of $2.08 per unit. The issue |
price reflects a 5.2% discount to the theoretical ex rights price ('TERP'1) |
of $2.195 per unit. |
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NorthWest Healthcare Properties Real Estate Investment Trust and the |
Directors of the Manager intend to take up all of their Rights (approximately |
$39.3m). Forsyth Barr Group Limited has underwritten the balance of $120.6m. |
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The new units will rank equally with existing units on issue and are eligible |
for the final quarter distribution for the financial year ending 30 June |
2016, expected to be paid in September 2016. |
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Mr Carr said "We have experienced an extremely successful period of growth |
and cemented a track record of being market leading long-term managers and |
investors in healthcare real estate. Having established and strengthened key |
operator partnerships across the sector and supported by strong fundamentals |
we will continue with our scale and diversification strategy delivering |
sustainable returns to investors." |
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The funds raised through the Offer will initially be used to reduce Vital's |
bank debt. This will enable Vital to continue to pursue development, |
acquisition and growth opportunities that are continually being evaluated, |
and for general corporate purposes. |
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Further details relating to the Offer will be provided in an Offer Document |
to unitholders. The Manager expects to have the Offer Document available to |
investors on the NZX website under the ticker code "VHP" on 28 June 2016 and |
it will be sent to unitholders shortly after that. The Offer closes on 19 |
July 2016. |
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A person should consider the Offer Document in deciding whether to acquire |
units. |
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This release should be read in conjunction with the Offer presentation which |
can be found on our website - www.vhpt.co.nz
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