03-09-2017, 10:52 AM
(03-09-2017, 10:15 AM)CY09 Wrote: Dont know much about reit but one reason could be because the exchange purchase will be fully funded by the rights proceeds. As man u life reit is leveraged, a 100% or close to it equity funding will result in the scenario you described
Tq CY09, bro Mod... I appreciated your reply,....
I'm afraid, still,... this is not good for unitholders, right ? Whatever the reasons,...
But, after saying the above,... among the docs released yesterday, there is one doc that mentioned the following :-
The current intention of the Manager is to finance the Total Acquisition Cost with debt financing and proceeds from the Rights Issue. However, the Acquisition Fee in relation to the Acquisition is to be paid in the form of Units.
The final decision regarding the proportion of equity and debt financing for funding the proposed Acquisition will be made by the Manager at the appropriate time taking into account the then prevailing market conditions and interest rate environment, availability of alternative funding options, the impact on Manulife US REIT’s capital structure, distributions per Unit ("DPU") and debt expiry profile and the covenants and requirements associated with each financing option.
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