By Marisa Wong
Madison, Wis., Oct. 3 – CFS Retail Property Trust Group announced a $200 million private placement of senior notes (/A/) to U.S. investors.
The company priced $40 million of 11-year notes at Treasuries plus 110 basis points, $60 million of 13-year notes at Treasuries plus 115 bps and $100 million of 15-year notes at Treasuries plus 115 bps.
“The principal and coupon of each tranche were swapped into Australian dollars at an all-in cost of BBSW plus a margin of just over 130 bps. The notes will be used to replace expiring debt of a similar margin and our debt duration will increase from 3.3 years to 4.0 years,” Michael Gorman, deputy chief executive officer and chief investment officer, said in a press release.
“We were pleased with the strong support from existing and new investors with over $700 million of bids,” Kah Wong, head of treasury, said in the release.
CFS Retail Property Trust is a real estate investment trust based in Sydney, Australia, that invests in shopping centers and retail outlet centers.
| Issuer: | CFS Retail Property Trust Group
|
| Issue: | Senior notes
|
| Amount: | $200 million
|
| Announcement date: | Oct. 3
|
| Rating: | Standard & Poor’s: A
|
|
|
| First tranche
|
| Amount: | $40 million
|
| Maturity: | 2025
|
| Spread: | Treasuries plus 110 bps
|
|
|
| Second tranche
|
| Amount: | $60 million
|
| Maturity: | 2027
|
| Spread: | Treasuries plus 115 bps
|
|
|
| Third tranche
|
| Amount: | $100 million
|
| Maturity: | 2029
|
| Spread: | Treasuries plus 115 bps
|
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