YTL Starhill Global REIT P40U Management, the manager of Starhill Global Real Estate Investment Trust (Starhill Global REIT) has refinanced the five-year RM330 million ($100.1 million) third senior medium term notes that it previously issued.
The REIT is doing so through Ara Bintang, a Malaysia-incorporate bankruptcy remote special purpose vehicle. A special purpose vehicle is a subsidiary created by a parent company to isolate financial risk.
The refinancing was completed with the issuing of new five-year RM500 million fourth senior medium terms notes, which have an expected maturity in September 2029 and a legal maturity in March 2031.
The proceeds of the fourth senior medium terms notes was utilised to repay the third senior medium terms notes. The proceeds were also used to partially repay RM170 million of the existing RM850 million junior medium term notes, previously issued by Ara Bintang to SG REIT (M), a wholly-owned subsidiary of Starhill Global REIT, on its expected maturity.
The RM170 million proceeds will be used by Starhill Global REIT to refinance its borrowings and its general corporate funding requirements, says the REIT.
Additionally, the REIT, through SG REIT (M), has also subscribed for new five-year RM200 million ninth junior medium term notes issued by ABS SPV, alongside 480 million redeemable preference shares issued by ABS SPV at the subscription price of RM1.00 per share. This transaction was subsequently utilised to refinance the balance of the existing RM850 million junior medium term notes held by SG SPV on its expected maturity.
According to the REIT, the above transaction is not expected to have a material impact on the gearing of Starhill Global REIT. Similarly, they add that the pro forma financial effects of the refinancing on the distribution per unit of Starhill Global REIT for the financial year ended June 30 2024 is not expected to be material.
Shares in Starhill Global REIT closed 0.5 cents higher, or up 0.95%, at 53 cents.
