FCOT – BT
FCOT in loan facility extension
IN a move to refinance the debt of Frasers Commercial Trust (FCOT), its trustee British and Malayan Trustees Limited yesterday entered into an agreement with lenders to extend a transferable term loan facility of $500 million for a term of three years.
This extended facility is part of $675 million debts facilities which FCOT’s manager, Frasers Centrepoint Asset Management (Commercial) Ltd, unveiled in June in a recapitalisation move for the real estate investment trust.
DBS Bank, OCBC Bank, Standard Chartered Bank and Commonwealth Bank of Australia, Singapore branch are lead managers for the $500 million facility.
The interest rate for this loan facility is the Singapore swap offer rate plus a margin of 2.65 per cent, excluding upfront fees. It will be secured by Singapore assets, namely KeyPoint, 55 Market Street, China Square Central and Alexandra Technopark.
The loan facility will be used mainly to repay the outstanding amount owed by FCOT on a loan note facility of up to $550 million that had been arranged by Commonwealth Bank of Australia, Singapore branch and CBA Asia Limited. The amount outstanding under the loan note facility is $475 million following the use of proceeds from a recent rights issue.
FCOT had received approval to acquire Alexandra Technopark in July from its sponsor, Frasers Centrepoint Limited (FCL), for $342.5 million. This acquisition will be financed by the issuing of convertible perpetual preferred units (CPPUs), which will entitle FCL to a distribution of 5.5 per cent a year.
FCL will also undertake the master lease for the property for five years, giving FCOT an annual rent guarantee of $22 million.
On Aug 26, Series A CPPUs were issued to FCL Investments Pte Ltd and FCL Trust Holdings (Commercial) Pte Ltd, as nominees of the vendor of Alexandra Technopark.
As at the end of March, FCOT had gross borrowings of $945.5 million, $624.5 million of which would mature in the second half of this year.
In June, FCOT announced its cash call for $214 million in a three-for-one rights issue.
After the completion of the rights issue, the issue of the CPPUs and the refinancing exercise, FCOT will have no debt maturing until 2012.