Proceeds have been utilised to refinance all of Cambridge Industrial Trust’s existing debt facilities.

‘The key terms of the loan remain as per the previous announcement other than a small increase in the effective interest rate resulting from the settlement and amortisation of a now ineffective part of the previous interest rate swap.

This rate will now be approximately 7.2 per cent and correspond to a distribution per unit impact for 2009 of approximately 1.2 cents per unit,’ CITM said in a regulatory filing to Singapore Exchange.

In its Dec 2008 announcement, CITM had indicated an effective interest rate of about 6.6 per cent per annum, including amortisation of upfront costs; it also said then that it anticipates the trust’s DPU in 2009 to be reduced by about 0.9 cent per annum, adding that amortisation of upfront costs does not affect the level of distributions to unitholders.

The syndicated term loan has a three-year tenor from drawdown.

CITM CEO Chris Calvert said in the latest announcement that the trust’s investors can ‘now enjoy the certainty arising from 100 per cent of the trust’s debt being fully funded for the next three years’.