By Marisa Wong
Madison, Wis., Nov. 29 - AIMS AMP Capital Industrial REIT priced S$30 million of 4.35% fixed-rate notes, trust manager AIMS AMP Capital Industrial REIT Management Ltd. announced.
The seven-year notes will be issued by the trust's wholly owned subsidiary, AACI REIT MTN Pte. Ltd.
Standard Chartered Bank and United Overseas Bank Ltd. will act as joint lead managers and joint bookrunners.
This is the second tranche of notes to be issued under the trust's S$500 million multicurrency medium-term note program established on July 25. The company settled the first tranche, S$100 million of 4.9% notes due 2016, in August.
Nick McGrath, chief executive officer of AIMS AMP Capital Industrial REIT Management, said in a press release, "We welcome debt investors' interest in [the trust's] capital base. The first issuance in August was five-times over-subscribed. Since then the notes issued under the first issuance have been trading well on the secondary debt market, which reflects debt investors' confidence in [the company].
"Strong interest enabled us to arrange an issuance with a seven-year tenor, which was priced attractively at 4.35% per annum. This long term issuance enables us to extend our average debt maturity to 3.61 years from 3.12 years."
"The net proceeds from this issuance will be used to fully repay S$28.8 million bank debt due in February 2014, enabling us to release our asset at 29 Woodlands Industrial Park E1 from serving as bank security. Unencumbering assets will give [the company] greater financial flexibility and balance sheet strength for the future." McGrath said.
Settlement is slated for Dec. 5.
AIMS AMP Capital owns 26 industrial properties in Singapore.
| Issuer: | AACI REIT MTN Pte. Ltd.
|
| Issue: | Fixed-rate notes
|
| Amount: | S$30 million
|
| Maturity: | Dec. 5, 2019
|
| Coupon: | 4.35%
|
| Bookrunners: | Standard Chartered Bank, United Overseas Bank Ltd.
|
| Settlement date: | Dec. 5
|
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