OUE C-REIT prices $100m 4.20% notes due 2027

The notes are expected to be issued on 5 May 2022.

OUE Commercial Real Estate Investment Trust's (OUE C-REIT) $100m worth of notes with an issue price of 100% of their principal amount, bearing an interest rate of 4.20% per annum and payable semiannually in arrear.

The original rate, however, will step down by 0.25% to 3.95% should any of S&P, Moody’s, or Fitch assigns an investment-grade rating to both OUE C-REIT and the notes within 18 months of the issue date of the notes, the company's manager said.

On the other hand, the rate of the notes will step up back to its original rate if at any time thereafter, a rating of OUE C-REIT and/or the notes is withdrawn by all rating agencies that have previously assigned ratings, or if the investment-grade ratings for both OUE C-REIT and the notes are not maintained.

Meanwhile, the C-REIT's manager said OUE CT Treasury Pte. Ltd., the issuer of the notes, may redeem all but not some of the notes at any time notes on any interest payment date at 100% of their principal amount plus accrued and unpaid interest if the aggregate principal amount of the notes outstanding is less than 10% of the aggregate principal amount originally issued.

"The issuer may also redeem all but not some of the Notes at 100% of their principal amount plus accrued and unpaid interest upon the occurrence of specified taxation events. The notes shall be redeemed by the Issuer at 100% of their principal amount plus accrued and unpaid interest upon a delisting or suspension of trading of units in OUE C-REIT," the manager added.

The notes are expected to be issued on 5 May 2022 and are expected to be listed on the Singapore Exchange Securities Trading Limited on or about 6 May 2022. It will mature on 5 May 2027.