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Frasers Hospitality Reit takes out S$370m in loan facilities

THE trustee of Frasers Hospitality Real Estate Investment Trust (FH Reit) has entered into S$370 million in bank loan facilities, the Reit manager said on Thursday night in a regulatory update. 

This consists of an aggregate amount of S$350 million in bank loans and a revolving credit facility of S$20 million between trustee Perpetual (Asia) and lenders DBS Bank, Maybank Singapore branch, and Bank of China Singapore branch.

The loan facilities will default if Frasers Hospitality Asset Management is no longer the Reit manager and is not replaced by a Monetary Authority of Singapore-approved substitute; and is also no longer a majority-owned subsidiary of Frasers Property (FPL), without prior written consent of all lenders

The Reit manager must at all times be a majority-owned subsidiary of FPL, according to conditions.

Around S$799 million in aggregate level of facilities may be affected should any of these events occur, along with a failure to prepay which causes a cross default under other borrowing of FH-Reit.

This amount does not take into account the amount of loan facilities which have not been drawn down; and future notes issued under FH Reit Treasury’s S$1 billion multi-currency debt issuance programme, which is guaranteed by Perpetual (Asia) in its capacity as trustee.