Charter Hall Education Trust Successful completion of $120 million Placement

Placement

Charter Hall Social Infrastructure Limited (Responsible Entity), as responsible entity of Charter Hall Education Trust (ASX:CQE) (CQE or the Trust) has successfully completed the fully underwritten institutional placement announced on 26 March 2019 (Placement).

In light of significant demand from new and existing institutional investors, the size of the Placement was increased from $100 million to $120 million. The additional proceeds raised will initially be used to repay debt. CQE’s 31 December 2018 pro forma gearing will reduce to 25.3%¹ and its 31 December 2018 pro forma NTA will increase to $2.93 per unit.

As a result of the Placement, 35,820,896 new units (New Units) will be issued at a price of $3.35 per unit.

The New Units are expected to settle on Friday, 29 March 2019, with allotment and normal trading expected to occur on Monday, 1 April 2019. From the date of issue, New Units issued under the Placement will rank equally with existing CQE units. As these New Units will be allotted after the Trust’s record date for CQE's distribution for the 3 months ending 31 March 2019, New Units will not be entitled to the CQE’s distribution for the three months ending 31 March 2019. New Units issued under the Placement will be entitled to the distribution for the three months ending 30 June 2019.

CQE confirms that, pursuant to ASX Listing Rule 7.1, the Placement is within CQE’s existing 15.0% placement capacity and does not require securityholder approval. 

Unit Purchase Plan

CQE also intends to undertake a non-underwritten Unit Purchase Plan (UPP) to raise up to $5 million².

Under the UPP, eligible securityholders in Australia and New Zealand will each be invited to apply for up to $15,000 of new units, free of brokerage and transaction costs. Units issued under the UPP will be offered at the Placement issue price of $3.35 per unit. New units issued under the UPP will rank equally with existing CQE units from issue and accordingly will not be entitled to the distribution for the three months ending 31 March 2019, but will be entitled to the distribution for the three months ending 30 June 2019.

Further information on the UPP will be lodged with the ASX and sent to eligible unitholders on or around Tuesday, 2 April 2019.

Recommencement of trading

CQE units are expected to resume trading on the ASX from market open today (Wednesday 27 March 2019).

To read the document, click on the download link above.