INVESTA Office Fund has completed a $US200 million ($A229 million) US Private Placement.
The USPP was split into three tranches with tenures of 11, 13 and 15 years to minimise refinancing risks in the future. The average tenure equates to 13 years and pricing achieved was at an average margin of 173bps over US Treasury.
Since taking over management of IOF in 2011, Investa Office has now refinanced or issued over $1 billion in debt including $125 million of medium term notes in the domestic market, refinancing of over $700 million of bank debt and this issuance brings total placements into the USPP market to $US325 million.
IOF finance director Ming Long said the issuance provides further depth and diversity in IOF’s debt capital mix.
“The offering was received favourably by the market, being oversubscribed due to strong demand for IOF credit. This continues the execution of IOF’s stated objectives of extending the tenure and diversifying the sources of debt.
“We are pleased to have priced at an average rate of 173 bps over UST on an average tenure of 13 years. The debt profile is now substantially diversified across tenure and sources, and following settlement of this issuance will allow IOF to reduce the near term bank debt and further extend our weighted average debt maturity to over seven years. We continue to review all markets to actively manage IOF’s capital,” Long said.
The National Australia Bank and Commonwealth Bank acted as the placement agents.
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