By Marisa Wong
Morgantown, W.Va., April 26 – Hotel Properties Ltd. said it priced S$150 million of 4.65% subordinated perpetual securities.
DBS Bank Ltd. and Oversea-Chinese Banking Corp. Ltd. are the joint lead managers and bookrunners for the offering.
The securities will pay semiannual distributions at a rate of 4.65% per year up to but excluding May 5, 2022, the first reset date. The distribution rate will be reset that date and every five years afterward. On the first reset date, the distribution rate will be set equal to the five-year Singapore dollar swap offer rate plus the initial spread of 268.5 basis points and, if applicable, a change-of-control event margin of 300 bps. After that, beginning with the step-up date of May 5, 2027, the distribution rate will equal the five-year Singapore dollar swap offer rate plus the initial spread, plus the change-of-control event margin if applicable and plus 100 bps.
Proceeds from the offer will be used to refinance existing borrowings and to finance working capital requirements.
The securities are expected to be issued on May 5.
Hotel Properties is a Singapore-based hotel and real estate management firm.
| Issuer: | Hotel Properties Ltd.
|
| Issue: | Subordinated perpetual securities
|
| Amount: | S$150 million
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| Maturity: | Perpetual
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| Bookrunners: | DBS Bank Ltd. and Oversea-Chinese Banking Corp. Ltd.
|
| Coupon: | 4.65% initially; resets on May 5, 2022 and every five years after that; on the first reset date, distribution rate will equal five-year Singapore dollar swap offer rate plus the initial spread of 268.5 bps and, if applicable, a change-of-control event margin of 300 bps; after that, beginning with step-up date of May 5, 2027, distribution rate will equal swap offer rate plus initial spread, plus change-of-control event margin if applicable and plus 100 bps
|
| Announcement date: | April 26
|
| Settlement date: | May 5
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