Frasers Hospitality REIT takes out $370m loan

This comprises an aggregate amount of $350m in bank loans and a $20m revolving credit facility.

Frasers Hospitality REIT (FH-REIT) has taken out a $370m loan facility, a filing with the Singapore Exchange (SGX) revealed.

This comprises an aggregate amount of $350m in bank loans and a $20m revolving credit facility between the firm’s trustee Perpetual Asia and DBS Bank, and the Singapore branches of Malayan Banking Berhad and the Bank of China.

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The loan facilities will default if Frasers Hospitality Asset Management resigns or is removed as manager of FH-REIT and is not replaced by a Monetary Authority of Singapore (MAS)-approved substitute. As well, the loan will default if Frasers’ manager ceases to be a majority-owned subsidiary of Frasers Property.

“None of the events described under the relevant conditions has occurred and none of the conditions described under the relevant conditions has been breached,” Frasers Hospitality Asset Management said.

Assuming an event under the relevant conditions occurs, and a failure to prepay causes a cross-default under other borrowings of FH-REIT, the aggregate level of facilities that may be affected is approximately $799m, excluding interest and exclusive of the facilities.

“This does not take into account the amount of the loan facilities which have not been, and which remain available for, drawdown and future notes issuances under the $1b multicurrency debt issuance programme of FH-REIT Treasury (a wholly-owned subsidiary of FH-REIT) and guaranteed by Perpetual Asia,” the firm added.