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Hotel Properties prices S$170m five-year notes at 3.8%

HOTEL Properties Limited (HPL) has closed the order book for S$170 million of five-year notes, recording S$200 million from over 30 accounts, joint lead manager and bookrunner DBS said on Friday.

The senior unsecured notes will carry a 3.8 per cent coupon rate, which is 328.5 basis points above the five-year swap offer rate. They are expected to be issued on June 2, 2020 and will mature on June 2, 2025.

The notes will be issued at an issue price of 100 per cent their principal amount and pay coupons on a semi-annual basis, payable in arrear on June 2 and Dec 2 of each year.

They also fall under the mainboard-listed hotelier's S$1 billion multicurrency debt issuance programme.

According to DBS, 73 per cent of the offering went to fund managers and banks, while 27 per cent went to private banks and corporations. By geography, 99 per cent of the offering went to Singapore investors and the remaining went to investors from other countries.

Proceeds from the issuance will be used for refinancing existing borrowings and financing Hotel Properties' working capital requirements.

The joint lead managers and bookrunners for the issuance are DBS Bank (B&D) and United Overseas Bank.

HPL shares last traded at S$2.93 on Thursday. 

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