Real estate investor and manager, Cromwell Property Group, has assisted Cromwell EREIT Management, the manager of Cromwell European REIT (CEREIT), in the issue of €300 mln of five-year senior unsecured notes.
Due November 2025, the notes have been priced at a coupon of 2.125% and a reoffer yield of 2.161% via CEREIT’s wholly-owned subsidiary Cromwell EREIT Lux Finco.
Cromwell’s Head of Treasury, Brett Hinton, commented: 'It is great to see Cromwell’s integrated, full-service platform drive a major capital transformation for the benefit of CEREIT’s unitholders.
'Following the successful raise of €625 mln in unsecured debt in November 2019, this is another example of the tailored treasury solutions we can provide with experienced colleagues working across three continents and multiple jurisdictions.'
Issued under CEREIT’s recently established €1.5 bn medium term note programme, the notes are expected to be issued on 19 November 2020 and dual listed on the Singapore Exchange Securities Trading Limited and the Luxembourg Stock Exchange.
Following the transaction, CEREIT’s weighted average debt maturity profile will be extended from 2.6 years to 3.9 years, with no major maturities due until November 2022. CEREIT will, in turn, have 90% of its debt unsecured.
The manager’s CEO, Simon Garing, added: 'I am very pleased with the strong demand from global credit investors in our inaugural debt capital market transaction. The positive investor feedback and widespread support we have received is an endorsement of Cromwell’s integrated European platform, treasury management capabilities, as well as recognised corporate governance and risk management processes.'
The notes issuance follows the recent establishment of a four year, €135-mln unsecured revolving credit facility with an accordion increase option of a further €65 mln, providing undrawn facilities amounting to €235 mln.
Morgan Stanley acted as the sole bookrunner for the notes. Standard Chartered Bank (Singapore) Limited acted as the ratings advisor.
