Lippo Malls Indonesia Retail Trust (LMIRT) announced the completion of its rights issue through which it will raise ~$S281mn ($212mn). The rights issue was 53.84% subscribed with the balance 46.16%, which were not validly accepted, allotted to satisfy excess applications with a preference given to the rounding of odd lots. This capital raise has brightened prospects of LMIRT resuming coupon payments on its SGD perps, as per IFR. LMIRT had skipped a coupon payment on its S$120mn ($90.5mn) 6.6% perps due on December 19, 2020 and announced plans to skip a coupon payment on its S$140mn ($105.6mn) 7% perps due on March 27, 2021 due to certain covenants on its $250mn 7.25% bonds due 2024 that prevented the company from making payments. IFR reported that the company said it would make full payment on the 6.6% perps after the completion of the rights issue, which would also clear the way for the coupon payment on its 7% perps.
LMIRT’s 6.6% perps and 7% perps traded largely stable at 81 and 83.9 cents on the dollar respectively.
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