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Keppel Reit subsidiary secures S$350m loan facility
KEPPEL Reit Management Limited, manager of Keppel Reit, on Tuesday said in a filing to the Singapore Exchange that Keppel REIT Fin. Company (KRFC) has obtained a S$350 million term loan facility. Keppel REIT Fin. Company is a wholly-owned subsidiary of Keppel Reit.
It is secured with a corporate guarantee by RBC Investor Services Trust Singapore.
Under the terms and conditions of the loan facility agreement, Keppel Reit Fin. Company can be given notice to prepay any outstanding loans should the manager cease to be the manager of Keppel Reit or a wholly-owned subsidiary of Keppel Corporation and a wholly-owned subsidiary of Keppel Corporation is not appointed as replacement manager.
"Assuming the occurrence of the Prepayment Event which may cause the lender to require KRFC (as borrower) to prepay the outstanding loans of the Loan Facility, and such occurrence were to cause a cross default under other borrowings of the Keppel REIT group, the aggregate level of facilities that may be affected is estimated to be, as at the date of this announcement, approximately S$3,758 million (excluding interest and fees)," the manager said.