champion-reit-launches-combined-followon-and-cb

Champion Reit launches combined follow-on and CB

The $600 million CB and $380 million equity placement will help fund the acquisition of Langham Place, which will push Champion into the top three among Asian Reits.

By Anette Jönsson

May 27, 2008

Champion Real Estate Investment Trust was in the market last night to raise $980 million from a follow-on equity placement and a concurrent convertible bond. The proceeds are to be used as part-payment for the HK$12.5 billion $1.6 billion acquisition of Langham Place that was announced more than three months ago.

The structuring of the CB has taken some time to complete as the issuer needed to ensure the deal was accepted by investors at a time when property stocks have been generally out of favour. It also needed to achieve a low-coupon structure to meet its main objective of the Langham Place acquisition being yield accretive. But more than anything, the issuer has...

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