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ARA H-Trust sets up S$800m debt issuance programme

ARA US Hospitality Trust (ARA H-Trust) has established an S$800 million multicurrency stapled debt issuance programme, it said on Friday morning.

Under the programme, ARA H-Trust will offer stapled notes and stapled perpetual securities in Singapore.

Net proceeds from any issuance under the programme will be used for ARA H-Trust's general corporate purpose.

ARA H-Trust is a hospitality stapled group comprising ARA US Hospitality Management Trust (ARA H-BT) which runs the hotels in the group's portfolio, and ARA US Hospitality Property Trust (ARA H-Reit) which holds the properties.

Under the new debt programme, each series of notes or perps issued by ARA H-BT will be stapled to a corresponding series of notes or perps issued by ARA H-Reit.

That means the ARA H-BT debt securities may only be offered if there is an equal number of ARA H-Reit debt securities offered to the same person at the same time.

In the event that ARA H-Reit notes or perps are redeemed in whole or in part, a corresponding number of ARA H-BT notes or perps will also have to be redeemed at the same time, and vice versa.

OCBC has been appointed as the programme’s arranger and initial dealer.

ARA H-Trust stapled securities of ARA H-Trust closed unchanged at US$0.865 on Thursday.