OUE HOSPITALITY TRUST
SK7.SI
OUE Hospitality Trust: Refinancing of syndicated facility
- OUEHT’s trustee recently entered into a facility agreement for a grant of a S$270.0m three-year senior secured transferable term loan facility. The Facility will be used to partially refinance the existing $630m syndicated facility and/or to partially finance the acquisition of the extension of Crowne Plaza Changi Airport, Singapore.
- In addition, OUEHT announced that S$228.0m out of S$238.6m of proceeds from the underwritten and renounceable rights issue have similarly been used to partially prepay a term loan of S$293m under the existing facility agreement.
- We see this successful refinancing as a positive indicator of the trust’s capital management.
- Nonetheless, OUEHT’s gearing currently stands at 38% following the rights issue, leaving it limited headspace to take on debt-funded acquisitions.
- Maintain HOLD with an unchanged fair value estimate of S$0.67.
Deborah Ong
OCBC Securities
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http://www.ocbcresearch.com/
2016-07-04
OCBC Securities
Analyst Report
0.67
Same
0.67
