Monday, August 25, 2008

MP Reit Refinances $220 Mln Loan

Source : The Business Times, August 25, 2008

Macquarie Pacific Star, the Manager of MP REIT, said on Monday that MP REIT has entered into a $220 million (US$155 million) club deal with three foreign banks to refinance its loans due end September 2008.

The new two-year loan facility, secured on competitive terms, matures in September 2010.

The $220 million club facility takes a second mortgage security on MP REIT's stakes in Wisma Atria and Ngee Ann City. MP REIT's EUR186.2 million Commercial Mortgage Backed Securities (CMBS) notes, originated in September 2005, are backed by a first priority mortgage loan over these two Singapore properties.

Following the execution of the $220 million club deal, rating agencies Fitch and Moody's have reaffirmed their respective 'AAA' and 'Aaa' ratings for the CMBS.

With the refinancing, MP REIT's gearing remains low at 28.9 per cent.

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