Lendlease Global Reit takes out up to S$760 million in sustainability-linked loan facilities
The loans will cover its existing debts, as well fund its general purposes and those of its subsidiaries
THE manager of Lendlease Global Commercial Real Estate Investment Trust (LReit) has entered into agreements for up to S$760 million in sustainability-linked term and revolving facilities.
This includes a senior unsecured loan of up to S$420 million, with an accordion feature of up to S$200 million, and another for up to S$140 million. A debt facility’s accordion feature, or incremental facility, allows borrows to expand total commitments under the credit agreement to accommodate incremental debt.
In a bourse filing on Friday (Dec 6), Lendlease Global Commercial Trust Management, manager of LReit, said the loans will be used to refinance the Reit’s existing debts, as well as cover any fees and expenses related to the loans and/or the general corporate purposes of LReit and its subsidiaries.
The manager noted two conditions to the facility agreements – if Lendlease Corporation, the sponsor of LReit, does not or ceases to own, whether directly or indirectly, at least 51 per cent of the manager’s share capital, all lenders can demand early repayment of the loans.
Additionally, if the manager of LReit resigns or is removed, and no replacement manager is appointed, this would be considered a default under the loan agreements.
The aggregate amount of loans that could be affected by these conditions is up to S$1.6 billion, excluding interest and fees, said the manager.
Units of LReit closed at S$0.56 on Friday, down 0.9 per cent or S$0.005, before the news.
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