By William Gullotti
Buffalo, N.Y., May 23 – OUE Commercial REIT Management Pte. Ltd., acting as manager for OUE Commercial Real Estate Investment Trust, announced that OUE CT Treasury Pte. Ltd. priced a S$50 million tap of its 4.2% notes due May 5, 2027 at par, according to a notice on Monday.
The additional notes will be issued under the company’s S$2 billion multicurrency debt issuance program and guaranteed by DBS Trustee Ltd., the trustee of OUE Commercial REIT.
The add-on will be consolidated to form a single series with the initial S$100 million of the notes issued May 5.
As with the initial issue, the interest rate may step down by 25 basis points to 3.95% if OUE and the notes receive an investment-grade rating. The rate is also permitted to step back to 4.2% if the rating is not maintained. There is no limitation to the number of times the rate may be adjusted between the two under the aforementioned circumstances.
OUE may elect to redeem the notes early on any interest payment date in whole, but not in part, at par plus interest for taxation reasons or if the aggregate principal amount outstanding is less than 10% of the initial issue. The notes will be subject to mandatory redemption at par plus interest if a delisting or trading suspension occurs.
Oversea-Chinese Banking Corp. Ltd. is the lead manager and bookrunner for the Regulation S offering.
Proceeds will be used to refinance borrowings, for general corporate funding and/or for other working capital purposes of OUE and its subsidiaries.
Listing for the additional Regulation S notes is expected on the Singapore Exchange effective May 30.
The commercial real estate investment trust is based in Singapore.
| Issuer: | OUE CT Treasury Pte. Ltd.
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| Guarantor: | DBS Trustee Ltd.
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| Amount: | S$50 million add-on
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| Issue: | Notes, tranche 002
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| Maturity: | May 5, 2027
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| Bookrunner: | Oversea-Chinese Banking Corp. Ltd.
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| Coupon: | 4.2%; may step down by 25 bps if the notes and parent company are given an investment-grade rating by Moody’s, S&P or Fitch within first 18 months of issue; may reset to original rate if the investment-grade rating is not maintained; no limitation on number of times the rate may be adjusted
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| Price: | Par plus accrued interest from May 5
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| Call options: | On any interest payment date in whole, but not in part, at par plus interest for taxation reasons or if less than 10% of the initial issue remains outstanding; mandatory upon delisting or suspension
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| Issue date: | May 27
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| Listing date: | May 30
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| Distribution: | Regulation S
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| Total issue: | S$150 million, including initial S$100 million issued May 5
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