Cromwell European REIT (CEREIT)’s wholly-owned subsidiary Cromwell EREIT Lux Finco S.a.r.l. has priced €300 million ($478.2 million) worth of five-year senior unsecured notes due November 2025.
The notes, which are issued under CEREIT’s newly established €1.5 billion euro medium term note programme (EMTN Programme), will carry a coupon of 2.125% per annum and a reoffer yield of 2.161%.
The notes are expected to be issued on Nov 19 and dual-listed on the Singapore Exchange Securities Trading Limited (SGX-ST) and the Luxembourg Stock Exchange.
The notes have been rated BBB- by Fitch, which also assigned the REIT a long-term issuer default rating of “BBB- with stable outlook” previously.
Morgan Stanley acted as sole bookrunner for the notes.
See: Cromwell European REIT reports 5.8% higher q-o-q 3Q distributable income of $36.0 mil
CEREIT says the net proceeds will be used to refinance existing debt. Following the transaction, CEREIT’s weighted average debt maturity profile will be extended from 2.6 years to 3.9 years, with no major maturities due until November 2022.
The REIT will also have 90% of its debt unsecured.
“Today’s landmark issuance completes a series of successful capital management initiatives this year after our recent establishment of a four-year €135 million unsecured revolving credit facility with an accordion increase option of a further €65 million, providing undrawn facilities amounting to €235 million,” says Simon Garing, CEO of the manager.
Units in CEREIT closed flat at 73.5 cents on Nov 16.
