Toronto-listed Dream Global REIT has announced the pricing of its inaugural European offering of €375 mln senior unsecured notes, which will be used to partially fund the firm's purchased of Merin, one of the Netherlands' largest commercial real estate platforms.
The notes will bear an annual interest rate of 1.375% and will mature on 21 December 2021. The notes were sold at a price of €99.575 per €100.00 principal amount of notes, for an effective yield if held to maturity of 1.474% per annum.
The net proceeds from the issue will be used to partially fund the Merin deal involving the acquisition of a portfolio of 135 office and light industrial properties located in the Netherlands. The transaction has been priced at €622 mln.
Taking the offering into consideration, Moody’s Investors Service affirmed the REIT's long-term issuer credit rating and assigned a Baa3 rating to the notes with a stable outlook.
The notes are being issued by a finance subsidiary of Dream Global REIT.
The closing is expected to occur on 27 July. Morgan Stanley & Co. International acted as the underwriter and sole lead manager for the offering.
