Tuesday, December 8, 2009

Capital Square’s $549m refinancing deal completed

A $549 million refinancing programme has been completed for Capital Square, an office building in Raffles Place, the property’s asset manager said yesterday.

Pacific Star Group said the facility includes $320 million of senior notes that will be listed on the Singapore Exchange – the largest Singapore dollar corporate bond issue this year.

Capital Square is owned by German company Ergo Insurance Group and managed by MEAG Pacific Star Asset Management, a joint venture between Pacific Star and an asset manager of the Munich Re and Ergo Insurance Group.

The proceeds from the facility will be used to refinance existing debt obligations and as working capital for Capital Square, a prime Grade A office property with 86,500 sq ft of net lettable area.

The deal comprises $320 million of three-year senior secured notes at 4.62 per cent, $151 million of junior notes and $78 million of preferred shares. Australia and New Zealand Banking Group (ANZ), through its Singapore branch, was lead arranger for the $549 million refinancing deal and lead manager and underwriter of the $320 million senior notes.

In-principle approval has been obtained to list the senior secured notes on the Singapore Exchange, Pacific Star said.

Its chief operating officer Arjun Dosaj said the company is ‘delighted’ to have secured and completed the ‘groundbreaking’ refinancing programme. Pacific Star has also been re-appointed asset manager of the property, he added.

Source : Business Times – 8 Dec 2009

No comments: