DEXUS Property Group has tapped the United States Bond market, seeking to raise $US300 million from the bond market.
The fixed rate senior unsecured notes were issued with a coupon of 7.125% for a tenor of 5 years. The notes were priced at 99.582% of the principal amount.
CEO Victor Hoog Antink said proceeds from the exercise will be used to pay down the group’s existing borrowings.
“Issuance into the US 144A market opens up a new source of capital, broadening our investor base and giving us increased access to long dated funding,.
“The earnings impact of this debt issue is in line with our expectations. Accordingly, our previously advised funds from operations guidance of 7.3 cents per security with distributions of 5.1 cents per security for the year ending 30 June 2010 remains unchanged,” he concluded.
Australian Property Journal
