Lendlease Global Commercial REIT prices $120m perpetual securities at 4.28%

The proceeds will refinance debt with SGX listing expected around 24 April.

Lendlease Global Commercial REIT has priced $120m 4.28% fixed-rate perpetual securities under its $1b multicurrency debt issuance programme, according to a Singapore Exchange (SGX) filing.

The securities, issued by DBS Trustee Limited in its capacity as trustee of Lendlease Global Commercial REIT, were priced on 14 April and are expected to be issued on 23 April.

The perpetual securities will be issued in denominations of $250,000 or multiples of that amount and will not have a fixed maturity date.

They will pay a fixed distribution rate of 4.28% per annum, payable every six months, from the issue date until 23 April 2029, which is the first reset date. After that date, the distribution rate may be adjusted at each reset date based on the terms of the issuance.

The issuer may redeem the securities in full, but not in part, on the  first reset date and on each distribution payment date after that, subject to the terms outlined in the pricing supplement.

DBS Bank Ltd. and Oversea-Chinese Banking Corporation Limited (OCBC) acted as joint global coordinators. DBS Bank Ltd., OCBC, and United Overseas Bank Limited were joint lead managers and bookrunners for the offering.

The securities are subordinated and unsecured obligations of the issuer and rank equally with other similar obligations as defined in the terms.

Net proceeds will be used to refinance existing borrowings, including $200m fixed-rate subordinated perpetual securities.

An application will be made to the SGX Securities Trading Limited for listing and quotation of the securities. Listing is expected on or about 24 April.