The Singapore-listed shipping trust plans to issue 423,675,000 units at a price of S$0.24 each, doubling the number of units traded.
The proceeds will be used to repay existing loans and meet the requirements of an extended loan-to-value covenant waiver until 29 December 2014, which is part of the trust’s restructuring. The units are priced at 33% discount to the last closing price.
RM said the rights issue could help it move towards an early exit from financial restructuring. “The accelerated repayment of RM’s bank loan facilities is a further commitment of the trustee-manager to deleverage RM and bring it to a position to exit its current loan restructuring restrictions and satisfy the trust exit conditions.”
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