OUE C-Reit prices S$100 million 4.2% notes due 2027
THE manager of OUE Commercial Real Estate Investment Trust (OUE C-Reit) said on Monday (Apr 25) that the Reit has priced its offering of S$100 million 4.2 per cent notes due 2027.
In a bourse filing, the manager said the notes will be issued at an issue price of 100 per cent their principal amount, and will bear interest at the rate of 4.2 per cent per annum.
The net proceeds will be used for refinancing existing borrowings, general corporate funding and/or other general working capital purposes of OUE C-Reit and its subsidiaries.
If any of the rating agencies – S&P, Moody’s or Fitch – assigns an investment grade rating to both OUE C-Reit and the notes within 18 months of the issue date of the notes, the 4.2 per cent rate will be stepped down to 3.95 per cent.
The interest rate would step back up to 4.2 per cent if a rating of OUE C-Reit and/or the notes is withdrawn by all the rating agencies that have previously assigned ratings or if the investment grade rating for both the Reit and the notes are not maintained.
The notes, which will be guaranteed by DBS Trustee, in its capacity as trustee of OUE C-Reit, are expected to be issued on May 5, 2022, and will mature 5 years later. They are being issued under OUE C-Reit’s S$2 billion multicurrency debt issuance programme.
OUE C-Reit units closed at S$0.42 on Monday, up 1.2 per cent before the announcement.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Ford profit beats on commercial sales; EVs still dragging
WhirlPool is cutting 1,000 jobs as US appliance demand remains stagnant
Anglo American says it received unsolicited buyout proposal from BHP
TSMC says ‘A16’ chipmaking tech to arrive in 2026, setting up showdown with Intel
Meta profits soar but costs of AI cause worry
IBM falls on weak consulting sales, overshadowing HashiCorp deal