Cambridge Industrial Trust enters into S$250m interest rate swaps

To reduce all-in cost of debt.

Cambridge Industrial Trust Management Limited, as manager of Cambridge Industrial Trust (CIT) has announced that on 5 December 2013, CIT, through RBC Investor Services Trust Singapore Limited (in its capacity as trustee
of CIT), entered into interest rate swaps with several banks to fix the interest rates on borrowings under its Club Loan Facility and Term Loan Facility.

Interest rate swaps for the Club Loan Facility has a notional amount of S$150 million for the period June 2014 to December 2015 at a fixed rate of 0.58% per annum, bringing the all-in cost to 3.45% per annum.

Meanwhile, the interest rate swaps for the Term Loan Facility has a notional amount of S$100 million for the period June 2014 to October 2016 at a fixed rate of 0.88% per annum, bringing the all-in cost to 3.33% per annum.

As at 30 September 2013, on a historical pro forma basis, after adjusting for the effect of the refinancing in October 2013 and the interest rate swaps described above, the weighted average maturity of CIT’s fixed rate debt is extended from 0.8 years to 2.3 years.

Also, 85.7% of CIT’s debt is maintained as fixed-rate debt, and the weighted average all-in cost of CIT’s debt is reduced from 3.9% to 3.6% from 2 June 2014.

Mr David Mason, Chief Operating Officer and Chief Financial Officer of the Manager said, “Consistent with our pro-active, prudent and capital risk management approach, we are taking advantage of the current market conditions to enter into additional interest rate swaps ahead of time. This has been done with the aim of reducing CIT’s debt cost, while extending the maturity of the fixed-rate debt.”