By Marisa Wong
Madison, Wis., Feb. 18 - Starhill Global Real Estate Investment Trust priced S$100 million of 3½% notes on Tuesday, according to an announcement by manager YTL Starhill Global REIT Management Ltd.
The seven-year notes will be issued through Starhill Global REIT MTN Pte. Ltd., a wholly owned subsidiary of HSBC Institutional Trust Services (Singapore) Ltd., the trustee of Starhill Global REIT.
This is the second series of notes to be issued under Starhill Global REIT MTN's S$2 billion multicurrency medium-term note program established in January 2008.
Australia and New Zealand Banking Group Ltd. and Oversea-Chinese Banking Corp. Ltd. are dealers for the notes.
The REIT trustee will use the proceeds from the issuance to pay down the trust's existing borrowings and for working capital purposes.
Starhill Global REIT's gearing is expected to increase to 29.5% from 29% once the new notes are issued and existing debt is repaid, the company noted.
Settlement is slated for Feb. 26.
The series 002 notes are expected to be assigned a BBB+ rating by Standard & Poor's.
Ho Sing, chief executive officer of YTL Starhill Global, said in a company press release, "We are pleased that the issue has been well received and priced in accordance with our expectations. The issue will diversify our sources of funding, offer greater financial flexibility and further improve our overall capital structure by extending our debt maturity profile and fixing our borrowing cost."
Based in Singapore, Starhill Global invests primarily in real estate for retail and office purposes in Singapore and overseas.
| Issuer: | Starhill Global REIT MTN Pte. Ltd.
|
| Issue: | Medium-term notes, series 002
|
| Amount: | S$100 million
|
| Maturity: | February 2021
|
| Coupon: | 3½%
|
| Dealers: | Australia and New Zealand Banking Group Ltd. and Oversea-Chinese Banking Corp. Ltd.
|
| Pricing date: | Feb. 18
|
| Settlement date: | Feb. 26
|
| Rating: | Standard & Poor's: BBB+ (expected)
|
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