VHP
21/06/2016 09:39
RIGHT
PRICE SENSITIVE
REL: 0939 HRS Vital Healthcare Property Trust
RIGHT: VHP: Vital announces $160m pro rata renounceable rights offer
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.
Equity-raising to support ongoing delivery of scale and diversification
strategy
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.
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."
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.
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.
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.
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."
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.
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.
A person should consider the Offer Document in deciding whether to acquire
units.
This release should be read in conjunction with the Offer presentation which
can be found on our website - www.vhpt.co.nz
- ENDS -
ENQUIRIES
David Carr, Chief Executive Officer
Vital Healthcare Management Ltd, Telephone 09 973 7301,
Email [email protected]
Stuart Harrison, Chief Financial Officer
Vital Healthcare Management Ltd, Telephone 09 973 7302,
Email [email protected]
1. TERP is the theoretical ex rights price of $2.195 which is equal to the
average price of 2 new units at the application price of $2.08 and 9 existing
units at $2.22 being the closing price as at 20 June 2016.
End CA:00284362 For:VHP Type:RIGHT Time:2016-06-21 09:39:13
