Rural Funds Management Limited, as responsible entity and manager of the Rural Funds Group, has successfully completed a $78.6 million, fully underwritten, Entitlement Offer.
The retail component of the Entitlement Offer, under which eligible retail unitholders were able to participate, comprised approximately $60.0 million, and closed on Monday, 26 June 2017. This was well supported by retail unitholders, with acceptances of approximately $33.3 million, representing a participation rate of 55.5%.
The institutional component was well supported by existing institutional unitholders, with a 99% take-up by eligible unitholders, raising approximately $18.6 million.
As previously outlined, the Entitlement Offer proceeds are being used to reduce gearing following the debt funded acquisition of the Lynora Downs cotton property and a parcel of Murrumbidgee River high security water entitlements in December 2016. The reduction in gearing will also create balance sheet capacity to further build RFF’s portfolio of quality agricultural assets in this new financial year, with the focus on a potential cattle property acquisition.
New units under the Retail Entitlement Offer commenced trading on a normal settlement basis on Monday, 3 July 2017.