The notes are issued at an issue price of 100% of their principal amount in denominations of $250,000. They are expected to be issued on March 27, 2025 and will mature on March 27, 2031.
The net proceeds will be used by Suntec REIT and its subsidiaries for general corporate purposes, refinancing of existing borrowings, financing or refinancing acquisition and/or investments and financing any asset enhancement works.
The issuance of the notes comes a month after the failed take over of the REIT by property tycoon Gordon Tang and his wife Celine, as their shareholding fell short of the 50% threshold as at the offer closing date on Feb 7.
The offer was first made at $1.16 apiece on Dec 5, 2024, and later raised to $1.19 per unit. The offer closing date was postponed twice.
See also: Acrophyte Hospitality Trust to sell under-performing and 'non-core' hotel at below valuation
Units in Suntec REIT closed flat at $1.16 on March 20.
