CLCT says that the net proceeds from the notes will be used for general corporate and working capital purposes, investment or refinancing of existing borrowings of the group.
The multicurrency debt issuance programme contains a condition where it is considered a default under the notes if the manager is removed from CLCT and the replacement manager is not appointed in accordance with the terms of the deed constituting CLCT.
If this condition is breached, it may trigger cross defaults in the other facilities, debt issues and borrowings of CLCT and its subsidiaries, the release notes.
In such an event, the aggregate level of facilities, debt issues and borrowings that may be affected is approximately $1.8 billion.
See also: SGX gives approval-in-principle to FHT to delist
Units in CLCT closed 5 cents lower or 8% down at 58 cents on Apr 9.
