PCT
04/11/2014 09:08
GENERAL
REL: 0908 HRS Precinct Properties New Zealand Limited
GENERAL: PCT: Precinct successfully issues long term debt
Precinct Properties New Zealand (NZX: PCT) announced today that it has
borrowed US$75 million (NZ$98 million) for 10 and 12 year terms in the United
States Private Placement (USPP) market.
The USPP issuance comprised two tranches, a US$50 million 10 year note with a
coupon of 4.13% and a US$25 million 12 year note with a coupon of 4.23%. To
remove all currency risk the proceeds have been fully swapped back to New
Zealand dollars. The resulting pricing reflects 10 and 12 year funding at
2.17% and 2.19% over the New Zealand three month bank bill rate (3 m BKBM)
and will be drawn on 27 January 2015.
George Crawford, Precinct's CFO, said, "We are very pleased with this
transaction and the strong levels of interest we have received from US
investors."
"This transaction is a first for the NZ property sector and positions
Precinct well to execute on its strategy over coming years. The support we
received from US investors was particularly pleasing given this is Precinct's
first debt issue to non-bank investors and recognises the quality of the
Precinct portfolio and the position it holds in the market. Importantly, the
pricing achieved was comparable with recent issuance from investment grade
rated Australian property entities."
The proceeds of the issue will initially be used to repay bank debt and will
increase the weighted average debt maturity profile by 1 year to 4.5 years
Earnings guidance for the 2015 financial year remains unchanged at 6.2 cents
per share (before performance fees).
ends
For further information, contact:
George Crawford
Chief Financial Officer
Office: +64 9 927 1641
Mobile: +64 21 384 014
Email: [email protected]
About Precinct (PCT)
Precinct is New Zealand's only specialist listed investor in prime and
A-grade commercial office property. Listed on the New Zealand Exchange, PCT
currently owns 17 New Zealand buildings - Auckland's PricewaterhouseCoopers
Tower, ANZ Centre, SAP Tower, AMP Centre, Zurich House, HSBC House and
Downtown Shopping Centre; and Wellington's State Insurance Tower, Vodafone on
the Quay, 171 Featherston Street, 125 The Terrace, No. 1 and 3 The Terrace,
Pastoral House, Mayfair House, 80 The Terrace, Deloitte House and Bowen
Campus.
End CA:00257201 For:PCT Type:GENERAL Time:2014-11-04 09:08:36
