European distribution facility owner Logis European Properties (PEPR) has generated EUR 97.5 mln from its capital raise launched at the end of August 2011. PEPR intends to use net proceeds to reduce outstanding debt.

European distribution facility owner Logis European Properties (PEPR) has generated EUR 97.5 mln from its capital raise launched at the end of August 2011. PEPR intends to use net proceeds to reduce outstanding debt.

As a result of the offer, Moody's Investors Service upgraded PEPR's corporate credit rating to Baa3, with stable outlook, from Ba1 positive outlook. The investment grade credit rating will reduce PEPR's annual interest expense by at least EUR 8.6 mln and provides improved access to capital markets.

Nearly 16 million new ordinary units were issued at EUR 6.20 per unit, a price which is equal to the recent tender offer price and a 10.1% premium to PEPR's IFRS net asset value per ordinary unit at end-June 2011. It is expected that the new units will commence trading on the Luxembourg and the Euronext Amsterdam stock exchanges on 8 September.

PEPR has 206 mln ordinary units in issue following completion of the offer.