Singapore-listed Starhill Global REIT (SGX:P40U) has entered into a facility agreement for a three-year unsecured term loan facilities of JPY7 billion & S$100 million and a five-year unsecured term loan and revolving credit facilities of S$500 million. The deal as handled by HSBC Institutional Trust Services (Singapore) who entered into a facility agreement with a club of eight banks to secure the unsecured loans.
|Starhill Global REIT currently has a total of 13 properties in Singapore, Malaysia, Japan, Australia and China.|
These banks are namely Overseas-Chinese Banking Corporation Limited, DBS Bank Ltd, United Overseas Bank Limited and the Singapore branches of Commonwealth Bank of Australia, Australia and New Zealand Banking Group Limited, Bank of China Limited , CIMB Bank Berhad and Standard Chartered Bank.
The facilities will be used to refinance approximately S$449 million of secured debt comprising a S$284 million three-year term loan and two-year term loans of an aggregate principal amount of approximately JPY12.5 billion. These loans are both maturing in September 2013.
A further S$64 million will be used to refinance unsecured revolving credit facilities maturing in December 2013. The balance of the facilities will be available for working capital requirements and general corporate funding purposes of Starhill Global REIT.
"These unsecured facilities in two tranches will enhance Starhill Global REIT’s financial flexibility in refinancing its debts and help to extend its average debt maturity profile. With the refinancing, Starhill Global REIT would have no refinancing requirement for its existing debt portfolio until June 2015", the REIT said in a statement.
Units of Starhill Global REIT are currently trading at $0.96 on the Singapore Exchange.