AUSTRALAND Property Group has issued $US170 million of guaranteed senior notes through the US Private Placement debt market.
The notes were issued in tranches $US140 million for 10 years with a fixed coupon of 5.61% and $US30 million for 12 years with a fixed coupon 5.81%. The weighted average maturity under this issue is 10.5 years.
Australand’s managing director Bob Johnston said securing longer dated funding from the US Private Placement market is a strong endorsement and further strengthens the group’s financial position.
The proceeds under the note issue will be swapped into Australian Dollars to remove foreign exchange exposure and will be used to enhance liquidity following the repayment of the CMBS notes in March 2011 and rebalance and extend the group’s average debt maturity profile to approximately three years.
Australian Property Journal
