the last couple of days of trading has typified a upcoming capital raising- my guess is 20c will be cap raising price
dont get me wrong- really like this stock- however, teens are a certainty post raising- hoping to buy some before xmas at 10-15c or thereabouts
Refer australian article last week
Macquarie CountryWide goes to market to raise $1bnFont Size: Decrease Increase Print Page: Print Florence Chong | December 11, 2008 Article from: The Australian MACQUARIE CountryWide Trust is likely to follow Macquarie Office Trust into the capital market to raise at least $1billion.
Moves are afoot to wind up the Macquarie DDR Trust.
MDT's management said yesterday it was undertaking a strategic review of the trust that could include disposing of its assets and returning capital to unitholders.
Commenting on the announcement, Goldman Sachs JBWere's David Lloyd said it "clearly signals to us that MDT has hung up the for-sale sign".
Macquarie DDR, which owns 80 community shopping centres in the US valued at $US2.1 billion ($3.2 billion), is trading at 5.5c, 95 per cent below net tangible assets at June 30, 2008.
The trust has $US1.2 billion of US debt.
Its sister trust, Macquarie CountryWide, is also facing serious challenges and may be forced to raise capital through share issues or asset sales.
Macquarie CountryWide's debts total $3.8 billion.
Its chief executive, Steven Sewell, said the trust was in the throes of selling about $250 million worth of assets.
Mr Sewell said the trust would identify another $50 million worth of assets for sale this year, and was considering reducing its interests in its five joint ventures in the US.
Both Goldman Sachs JBWere and Merrill Lynch said MCW was in discussions on potential sales across its US joint venture with Regency Centers.
"In our view MCW has little option but to sell assets, as cutting distributions (even to zero), or raising equity will not be enough on their own to sufficiently pay down debt," Goldman's David Lloyd said. Some $450 million in commercial mortgage-backed securities are due in December 2009.
Merrill Lynch's John Kim expects Macquarie CountryWide to sell assets and/or raise more than $1 billion, or 20 per cent of its portfolio value of $5 billion at June 30, 2008.
Macquarie CountryWide this week secured approval from its bankers to extend a $250 million debt facility for another 12 months to mature in February 2012. Under the new deal, there will be just one covenant across all debt facilities, set at $1.5 billion.
At September 30, Macquarie CountryWide's tangible net worth was $2.6 billion, but it paid for the privilege with a higher cost of debt, with its borrowing margin increased to 2-2.5 per cent -- up from 0.8 per cent for the new deal.
That will reduce this year's earnings per security by 0.3c.
Collectively, the three main Macquarie-listed trusts owe almost $9.64 billion, against their combined market capitalisation of $773.7 million.
The much smaller Macquarie Leisure, with assets of $800 million, has a 33.2 per cent gearing ratio.
Trading at 96.5c a unit, Macquarie Leisure has a market value of $228 million.
Macquarie Office is seeking to raise about $500 million from institutions and retail investors in a one-for-one entitlement offer and a $100 million placement.
At a 55.5 per cent gearing ratio, Macquarie Office is the most heavily indebted of all Macquarie's trusts, according to Mr Kim's calculations.
He wrote in a recent note that Macquarie Office had debt totalling $4.464 billion and that it had no "headroom" to accommodate further increases in gearing.
Gearing has been rising because of the lower Australian dollar and falling asset values.
Fund managers said Macquarie Group may be forced to underwrite much of the capital raising of Macquarie Office and its other trusts because of investor fatigue.
ING Industrial Trust is still trying to raise $400 million a week after it went to the market.
Trusts, including GPT, Mirvac, Dexus and ING Office Trust, have raised
MCW Price at posting:
20.0¢ Sentiment: Sell Disclosure: Not Held
