Fri, Nov 13, 2020 – 9:35 AM
A SUBSIDIARY of Cromwell European Real Estate Investment Trust (Cromwell E-Reit) has priced an offering of 300 million euros (S$477.8 million) of five-year senior unsecured notes.
The coupon rate will be 2.125 per cent while the reoffer yield will be 2.161 per cent, payable annually in arrears.
The guaranteed notes are expected to be issued on Nov 19, 2020 and dual-listed on the Singapore Exchange and the Luxembourg Stock Exchange.
Net proceeds from the issuance will be used to refinance existing debt, Cromwell E-Reit’s manager said on Friday morning.
Following the transaction, the trust’s weighted average debt maturity profile will be extended to 3.9 years from 2.6 years, with no major maturities due until November 2022.
The manager added that Cromwell E-Reit will have 90 per cent of its debt unsecured, “a major capital transformation for the benefit of equity investors”.
The notes come under Cromwell E-Reit’s recently established 1.5 billion euro medium-term note programme.
Simon Garing, chief executive of the manager, said there was “strong demand” from global credit investors in the trust’s inaugural debt capital market transaction.
The new notes have been rated BBB- by Fitch Ratings Singapore, which earlier assigned the trust a long-term issuer default rating of BBB- with a stable outlook.
Morgan Stanley acted as sole bookrunner for the deal.
Cromwell E-Reit is “now in a stronger financial position, with no further debt expiring for two years and a much improved weighted average debt maturity profile”, said Mr Garing.
Units of Cromwell E-Reit were trading flat at 0.46 euro as at 9.10am on Friday.