CFS Retail Property Trust Group has issued $100 million seven-year medium term notes.
The MTNs were priced at a coupon of 5.00% (5.1825% yield equivalent to swap+1.65% margin). They are senior and unsecured and will be used in part to replace a $50 million bank debt facility which is due to expire on 8 February 2013, and the remainder will contribute to capital expenditure on CFX’s development pipeline.
CFX fund manager Michael Gorman said as a result of the MTN issuance, the weighted average duration of the debt is extending by 0.1 years to 3.2 years and the weighted average duration of the trust’s hedged debt is extending by 0.2 years to 3.6 years, with a modest decrease in CFX’s overall cost of debt.
Property Review
