Quick Summary: Manulife US REIT Recapitalisation Plan

The management of Manulife US REIT introduces a Recapitalisation Plan to help the REIT move forward.

Background

Manulife US REIT unveils a Recapitalisation Plan, to enhance the REIT's financial position. This follows a 14.6% decline in portfolio valuations to US$1,633.55 million in 1H 2023, breaching a financial covenant and prompting strategic measures to address the issue.

The Plan : Recapitalization Plan

• Approximately US$285.0 million of proceeds to pay down debt owed to Lenders on a pari passu basis through the US$98.7 million sale of Park Place to Sponsor, US$137.0 million Sponsor-Lender Loan and US$50.0 million of cash from MUST’s own cash holdings.
• Proposed Disposition Mandate to raise at least US$328.7 million through asset dispositions
• Dividends: Half-yearly distributions continue to be halted till 31 December 2025, unless Early Reinstatement Conditions are achieved
• Lenders to waive MUST’s past and existing financial covenant breaches, extend all loan maturities by a year, and relax financial covenants

What is needed for the plan to move forward?

For the plan to happen, investors have to vote in favor for all 3 resolutions.

Crucial dates for investors to remember when submitting their decisions

Especially for SRS holders, the cut off date is earlier so do take note!

For more details please refer to this link