Starhill Global Reit obtains S$550m in term loan, revolving credit facilities

THE trustee of Starhill Global Real Estate Investment Trust (Starhill Global Reit) has entered into a five-year unsecured S$550 million facility agreement with a club of banks.

The agreement is for S$250 million in term loan facilities and S$300 million in revolving credit facilities (RCFs). Of the RCFs, S$100 million is uncommitted, said Starhill Global Reit's manager on Monday evening.

It will use the term loan facilities to refinance Starhill Global Reit's S$100 million unsecured medium-term notes upon maturity on Feb 26, 2021, as well as a S$150 million unsecured term loan ahead of its maturity on Sept 16, 2021.

Meanwhile, the RCFs will be available for the Reit's working capital requirements and/or general corporate funding purposes. The committed portion of these RCFs will replace the existing S$190 million committed RCFs that are expiring in September 2022.

Following the refinancing, the transaction is not expected to have a material impact on the gearing of Starhill Global Reit.

If a change of control event occurs, the aggregate level of facilities that may be affected is about S$1.53 billion, excluding interest, as at Monday.

Starhill Global Reit units closed at 49.5 Singapore cents on Monday, down 0.5 cent or 1 per cent.