By Sarah Lizee
Olympia, Wash., Oct. 15 – Hotel Properties Ltd. said it priced S$135 million of 4.4% subordinated perpetual securities, according to a notice of listing.
The securities are being issued under the company’s S$1 billion multicurrency debt issuance program.
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 4.4% per year up to but excluding Oct. 22, 2024, 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 291.5 basis points and, if applicable, a change-of-control event margin of 300 bps. After that, beginning with the step-up date of Oct. 22, 2029, 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 Oct. 22.
Hotel Properties is a Singapore-based hotel and real estate management firm.
| Issuer: | Hotel Properties Ltd.
|
| Issue: | Subordinated perpetual securities
|
| Amount: | S$135 million
|
| Maturity: | Perpetual
|
| Bookrunners: | DBS Bank Ltd. and Oversea-Chinese Banking Corp. Ltd.
|
| Coupon: | 4.4% initially; resets on Oct. 22, 2024 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 291.5 bps and, if applicable, a change-of-control event margin of 300 bps; after that, beginning with step-up date of Oct. 22, 2029, distribution rate will equal swap offer rate plus initial spread, plus change-of-control event margin if applicable and plus 100 bps
|
| Announcement date: | Oct. 15
|
| Settlement date: | Oct. 22
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
