Cambridge – Nomura

First look

Following its announcement of a new CEO, Cambridge announced after market close it had agreed to the terms of a 3-year syndicated loan to refinance all existing debt facilities. While the eventual cost is higher than our expectation, it is far lower than the market was pricing in prior to the announcement. This development should allay much of the refinancing concern over the S-REITs. Pending drawdown of this loan, we keep our DPU forecasts and other assumptions unchanged.

Refinancing at higher cost, but risk largely abated