Vicinity Centres (ASX:VCX) is undertaking Equity Raising to strengthen its balance sheet, which comprises of:
- Placement: Fully underwritten institutional placement to raise $1,200 million
- Security Purchase Plan (SPP): Non-underwritten SPP to raise a maximum of $200 million
Securities shall be issued at an issue price of $1.48 per security, which signifies an 8.1% discount to $1.61, the last close price on 29 May 2020.
VCX anticipated to have following impact on its financials:
- Cash and undrawn debt facilities of $2.6 billion
- Net tangible assets per security falling from $2.40 to $2.23
- Gearing reduced from 34.9% to 26.6%
VCX shall not pay any distribution for the six months period ending 30 June 2020.
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