CapitaLand Ascott Trust (CLAS) has priced $260 million worth of perpetual securities under its $2 billion multicurrency debt issuance programme.
The perpetual securities carry a rate of distribution of 4.2% per annum, which is applicable to the period from May 28 to March 28, 2031, being the first reset date. The rate is also applicable to the period from then and each reset date thereafter.
The reset rate of distribution will be a rate that’s equivalent to the five-year Singapore overnight rate average (SORA) overnight indexed swap (OIS) plus the initial rate of 2.133% per annum.
Distributions will be payable semi-annually in arrear on March 28 and Sept 28 per year. The first distribution payment date will fall on Sept 28 this year.
Unpaid distributions are not cumulative.
The perpetual securities are expected to be issued on or around May 28.
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According to CLAS, the net proceeds from the issue of the perpetual securities will be used to redeem its $250 million fixed rate perpetual securities that were issued on June 30, 2015. They will also go towards financing the REIT’s asset enhancement initiatives (AEIs) and, or used for capital requirements.
Oversea-Chinese Banking Corporation (OCBC) was the lead manager and bookrunner for the perpetual securities.
Units in CLAS closed flat at 86 cents.
