Abacus Property Group (ASX:ABP)
have announced an entitlement offer to raise $121 million that will be used to reduce debt.
The new securities will be offered at $2.82 each, a 5.8 per cent discount to the average price over the past 5 days, and should offer a yield of 6 per cent.
The funds raised will go towards paying off debts incurred by the settlement of Oasis Shopping Centre on the Gold Coast. The debt reduction is a short term strategy however as is committed to its strategy of accretive acquisitions and new development projects.
The offer will be neutral to the dividend target of 17c per share in the 2015 financial year.
Abacus Property Group produced a first half net profit of $62.6 million for the period ended 31 Dec 2014.