Cache Logistics Trust raises $100 from private placement exercise

$60m will be used to repay debts.

Cache raised $100m gross proceeds from issuing 106.27m units at $0.941 each.

Analysts report that $60m out of Cache Logistics Trust (Cache)’s $100m gross proceeds will be used to repay debt. $3m will be used for issue expenses, while the remaining $37m will be set aside to fund possible acquisitions in Australia.

Meanwhile, analysts at Maybank Kim Eng say DPU is immediately diluted as the placement is not connected with any specific acquisition and the money will be largely used for debt repayment.

“Apart from dilution, Cache’s pre-placement aggregate leverage was 39.4%, a comfortable distance from REITs’ 45% limit. No debt is expiring until FY17. As such, we don’t see an urgent need for new funds,” Maybank Kim Eng adds.