-->

OUE Hospitality Trust - OCBC Investment 2016-07-04: Refinancing of syndicated facility

OUE Hospitality Trust - OCBC Investment 2016-07-04: Refinancing of syndicated facility 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 | http://www.ocbcresearch.com/ 2016-07-04
OCBC Securities Analyst Report HOLD Maintain HOLD 0.67 Same 0.67


Advertisement



MOST TALKED ABOUT STOCKS / REITS OF THE WEEK



loading.......