Real estate investor and manager, Cromwell Property Group (ASX:CMW) (Cromwell), has assisted Cromwell EREIT Management Pte. Ltd., the Manager of Cromwell European REIT (CEREIT), to price an offering of €300 million five-year senior unsecured notes due November 2025 at a coupon of 2.125% and a reoffer yield of 2.161% via CEREIT’s wholly-owned subsidiary Cromwell EREIT Lux Finco S.à r.l.
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 million 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.”
“The London-based European Treasury team, led by Gwendal Kalkofen, continues to leverage Cromwell’s strong global banking and investor relationships to bring true value-adding solutions to our customers,” he concluded.
Issued under CEREIT’s recently-established €1.5 billion Euro 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.”
“As a result of our responsible capital management approach, CEREIT is now in a stronger financial position, with no further debt expiring for two years and a much-improved weighted average debt maturity profile, all underpinned by CEREIT’s recent ‘BBB’ investment-grade Fitch1 rating.”
The notes issuance follows the recent establishment of a four year, €135-million unsecured revolving credit facility with an accordion increase option of a further €65 million, providing undrawn facilities amounting to €235 million.
Morgan Stanley acted as the sole bookrunner for the notes. Standard Chartered Bank (Singapore) Limited acted as the Ratings Advisor.
1. Fitch Ratings Singapore Pte Ltd.