Hotel Properties launches new perpetual issue

BILLIONAIRE Ong Beng Seng's Hotel Properties has launched a new perpetual issue on Tuesday.

The S$135 million deal is a perpetual issue non-callable five years priced to yield 4.4 per cent per annum at par. The initial price guidance was in the 4.60 per cent area, according to a term sheet seen by The Business Times.

The issue is from its S$1 billion multicurrency debt issuance programme.

Proceeds from the issue is for refinancing existing borrowings and financing working capital.

Mr Ong who is also known as OBS in business circles holds a 54.3 per cent stake in Hotel Properties.

The group has interests in 29 hotels under brands such as Four Seasons, Hilton International, Como Hotels, InterContinental Hotels Group and Six Senses Hotels. In addition, it also manages its own portfolio of hotels under brands such as Hard Rock Hotels and Concorde Hotels & Resorts. The group owns hotels, resorts and shopping galleries in 12 countries.