RUBICON America Trust, which according to a leading researcher has one of the best portfolios, has easily $204.1 million of long term subordinated debt securities in a private placement to US institutional investors.
The trust which has the United States Government and its agencies as its major tenant, will use the proceeds, about $US104.1 million ($A126.05 million) to repay the subordinated debt facility from Deutsche Bank, which matures in July 2008.
The trust has allocated a further $US11.3 million ($A13.68 million) to repay the Rubicon Capital facility and $US47.4 million ($A57.4 million) to an in part repayment of the warehouse debt facility provided by Credit Suisse to Rubicon Finance
Rubicon’s managing director Gordon Fell said the issue provided the trust with the opportunity to replace short term debt with competitively priced long term debt, which significantly reduces funding risk.
It also provided $US58.7 million ($A71.08 million) of additional capital to finance growth opportunities and enhance equity returns to RAT investors.
Australian Property Journal
