Keppel REIT to price S$200 million five-year converts to yield 1.7% to 1.9%, up 12.5% to 17.5%

By Abigail W. Adams

Portland, Me., April 2 – Keppel REIT Management Ltd. plans to price S$200 million in five-year convertible bonds on Tuesday with price talk for a yield of 1.7% to 1.9% and an initial conversion premium of 12.5% to 17.5%, according to a company announcement.

BNP Paribas and Credit Suisse (Singapore) Ltd. are joint bookrunners for the offering which carries a greenshoe of S$50 million.

The bonds are callable after three years subject to a 130% hurdle.

They are putable on the three-year anniversary of the closing date. They have takeover and dividend protection.

Net proceeds are expected to be S$197.45 if the greenshoe is not exercised. Proceeds will be used refinance debt, fund potential acquisitions and for general corporate purposes.

Keppel REIT is a Singapore-based real estate investment trust.

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