Babcock & Brown is insuring 323,460,000 shares at S$1.06 per share in Babcock & Brown Structured Finance Fund Limited (“BBSFF”), following the registration of its prospectus with the Monetary Authority of Singapore yesterday.
The offering comprises an international placement of 316,990,000 shares to investors, including institutional and other investors in Singapore, and an offering of 6,470,000 offering shares to the public in Singapore, subject to an over allotment option of 35,941,000.
Babcock & Brown advised that that the institutional placement tranche of the fully underwritten offering is over-subscribed.
According to Babcock & Brown, based on the offering price shareholders can expect to receive dividends of 9.54 Singapore cents per share for 2007, providing a yield of 9.0% for 2007, plus an additional 0.52 Singapore cents per share relating to the period from listing to 31 December 2006, bringing total cash dividends expected to be declared and paid for the year of 2007 to 10.06 Singapore cents per share.
BBSFF looks to invest in a portfolio of assets and economic exposures, with the initial portfolio diversified across three target sectors: operating leasing assets, loan portfolio and securitisation assets, and alternative assets.
The initial portfolio will include assets originated by two of Babcock & Brown’s five core business units, operating leasing and structured finance. The acquisition cost of the initial portfolio is approximately S$394 million.
The shares are expected to commence trading on the Singapore Exchange Securities Trading Limited on 20 December 2006.
