THE Charter Hall Retail REIT has successfully secured an extension of its Australian multi-currency debt facility to September 2015 from the current maturity of February 2012.
As a result, the REIT’s weighted average debt maturity has increased from 2.8 years to 3.2 years.
Under the deal, the trust will see a reduction in the margin, from 2.40% to 2.12%, comprising a 1.00% line fee and a 1.12% usage fee.
The new loan will also eliminate the “tangible net worth” covenant; the last remaining REIT-wide debt covenant. The simplification of other security pool covenants, including the elimination of a 60% draw stop covenant and the reduction of the security pool gearing covenant from 65% to 60%, providing significant headroom to the gearing level of 29.4% at 30 June 2010; and the security pool interest cover ratio (ICR) of 1.75x remains unchanged, again providing substantial headroom to the ICR level at 30 June 2010 of 4.42x.
The $225 million facility limit is currently drawn to $107.9 million at 30 June 2010.
The trust also announced it has completed its unit consolidation of every 10 units on issue into 1 unit.
The consolidation of units has resulted in Charter Hall Office REIT reducing its total units on issue from approximately 4.93 billion to 493,319,730 units, with a corresponding increase in the pre-consolidation unit price by a factor of 10.
The Charter Hall Office REIT has also done the same, reducing its total units on issue from approximately 4.93 billion to 493,319,730 units.
Australian Property Journal
