CMT, CCT – BT

CapitaCommercial, CMT plan issue of floating rate notes

CAPITACOMMERCIAL Trust (CCT) and CapitaMall Trust (CMT) intend to launch a ‘benchmark-size’ offering of US dollar secured floating rate notes this month, the trusts said yesterday.

The notes, which will be due in 2018, are part of the $10 billion multi-currency secured medium term note programme set up in September 2006.

CCT and CMT – which are both units of Singapore’s largest listed property group CapitaLand – did not provide the total value of the notes that will be issued in this tranche. But benchmark-size offerings are usually in excess of US$500 million.

Some $866 million worth of notes have been issued to-date under the programme, a spokesman said. He added that a further announcement will be made when the notes are launched, which is expected to be within this month. The notes, which will be secured by Raffles City Singapore, will be issued through special purpose vehicle Silver Oak.

CCT and CMT also said that in conjunction with the notes issue, DBS Bank, The Hongkong and Shanghai Banking Corporation (HSBC) and Standard Chartered Bank will grant a $200 million term loan facility and a $300 million revolving credit facility to the issuer. It is intended that the facilities will mature on the same date as the notes and will also be secured by Raffles City Singapore – but will be subordinated to the notes.

DBS, HSBC and Stanchart has also been appointed as the joint lead managers of the notes issue. The proceeds from the notes and facilities will be used to refinance existing borrowings, finance future capital expenditure and asset enhancement initiatives, and for general corporate and working capital purposes.

The notes are expected to be assigned an ‘AAA’ rating by Fitch and an ‘Aaa’ rating by Moody’s Investors Service, CCT and CMT said.

CCT shares gained one cent to close at $1.46 yesterday, while CMT closed unchanged at $1.95.