The corporate family rating of MacArthurCook Industrial Real Estate Investment Trust (MI-REIT) has been downgraded by Moody’s Investors Service to “Caa1” from its previous rating of “B2.”
The rating, which already has a negative outlook, could still be downgraded further if MI-REIT cannot provide material progress in obtaining a definitive financing for its debt maturities and its purchase of Plot 4A International Business Park over the next three- to six-month period. Moody’s remarks that the REIT has the credit approval of its lenders, Commonwealth Bank of Australia and National Australia Bank. The approval was for an extension of its debt facility in Singapore, amounting to $201 million, to December 31. MI-REIT’s manager, MacarthurCook Investment Managers (Asia) Limited, said that they remain in advance negotiations with its lenders with regard to the long-term refinance of the facility. Together with Standard Chartered Bank, its adviser, they are considering capital structure with the most appropriate longer term for MI-REIT.
Compact Metal proposes rights issue
Compact Metal Industries proposed a renounceable non-underwritten rights issue of shares totaling to about 1.15 billion new ones. The new shares will be at $0.01 each with approximately 575.44 million free detachable warrants. The right to purchase one more share at the set exercise price $0.015 comes with every warrant. The issue is based on one warrant for every two rights shares and three rights shares for every 10 existing shares. The rights cum warrants issue is expected to generate estimated net proceeds of $5.27 million in the minimum subscription scenario, and $19.99 million in the maximum subscription scenario. The group plans to use the net proceeds for general working capital and to repay loans.
Sunpower subsidiary secures $5.6 million contract
Jiangsu Sunpower Technology Company Limited, a subsidiary of the Sunpower Group, said that they have secured a $5.6 million (26.7 million yuan) contract to provide its patented heat pipes to the Tibet Autonomous Region’s Transport Department to be used by the Project Management Centre of Key Highway Construction. Much is expected from the contract. Jiangsu expects the contract’s delivery some time in H2 of 2009. Sunpower expects that this project will impact FY2009 performance positively.