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Viva Energy REIT (ASX:VVR) informed the Australian stock exchange that it has successfully completed $100 million of Institutional Placement, the issue was fully underwritten.
The company highlighted that the Institutional Placement garnered strong demand from both the existing security holders and new investors. The Institutional Placement was offered at $2.32 a security, and the issue was at 4.1% discount to the closing price of $2.42 on 20th February 2019
The $100 million equity fundraising via the Institutional Placement will result in fresh new securities to the tune of 43.1 million, and these shares will be allocated and commence trading on 27th February 2019.Â
The company also announced that it is raising up to $10m via the Security Purchase Plan ("SPP") as per the announcement made on 21st February 2019.VVR will offer eligible security holders in Australia and New Zealand the opportunity to participate in a non-underwritten SPP at $2.32 per security, which gives the shareholders to bid at the same price as the issue price under the Institutional Placement.
Under the SPP plan, the eligible security holders will each be eligible to apply for up to $15,000 worth of New Securities, and this $15,000 is free of transaction and brokerage costs. The company also stated that more information with regards to SPP would be set out in the SPP booklet that is to be released to the ASX and the eligible security holders will receive it on or about 5th March 2019
New Securities issued under the Institutional Placement, and the SPP will be entitled to any distribution for the six months ending 30 June 2019. However, they will not be entitled to the distribution for the six months ended 31 December 2018 which will be paid on 28 February 2019.
The company also mentioned that the new securities issued under the Institutional Placement and the SPP would rank pari passu with existing securities.
VVR also provided the road map for the utilization of the funds raised. The fund will be used to partway finance eight acquisitions valued approximately $47 million, and these acquisitions were completed in 2H FY2018 and $8 million in committed expenditure. Funds raised will provide headroom for future growth. With this round of fundraising, the company highlighted that its Pro-forma gearing is 32.3% and the Balance sheet is refreshed with the capacity to pursue further acquisitions, consistent with the company's investment criteria.
The company has drawn its future plans and in effect has identified a ~$130 million pipeline of potential acquisitions, $67 million of the same are in advanced due diligence.
As of the announcement date, the company has a portfolio of $2.5bn which comprises of 453 high-quality service stations and convenience properties, and 75% of its properties are in the metros.
Stock Information:
Viva Energy REITâs (ASX:VVR) market capitalization stands at A$1.76 billion. The Stock price closed the trading session at A$2.380, down 1.653% on 22 February 2019 with the 52-week low price of A$1.960 and the 52-week high price of A$2.450. The company reflects PE ratio of 10.510x, EPS of 0.230 AUD and Dividend yield of 5.45%.
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