GOODMAN Group has priced its third debt issue of $US500 million in the 144A/Reg S bond market.
The senior, unsecured notes have an effective fixed cost of 6.0% (excluding issue costs) for a term of 10 years. Proceeds of the issue will be used primarily to repay existing borrowings and accordingly do not impact on the group’s gearing levels.
The notes were rated BBB by Standard & Poor’s Ratings Services.
S&P said Goodman benefits from a solid Australian market position, established presence in the UK, Europe, and growing position in Asia.
“The group has a stable rental income and track record of accessing third-party capital to expand and support its investment and funds-management activities. These rating strengths are tempered by an exposure to more-volatile property-development earnings; a high level of look-through debt levels that are dependant on GMG divesting its equity stakes or reducing gearing in its cornerstone investments to target levels; and relatively soft market conditions particularly in the European region,” S&P said.
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