Stockland has secured new, long-dated US Private Placement (USPP) debt to the equivalent value of A$398 million, with funding to be delivered in August 2016, subject to standard investor due diligence and documentation.
The USPP issuance comprised three tranches in US dollars of 10, 12 and 15 years totalling US$265 million and a 12 year $50 million tranche in Australian dollars. The transaction was priced in Australian dollar terms at an average spread over BBSW of +222bps (inclusive of fees). Details of these tranches are as follows:
- US$152 million with a tenor of 10 years maturing August 2026
- US$68 million with a tenor of 12 years maturing August 2028
- US$45 million with a tenor of 15 years maturing August 2031
- A$50 million with a tenor of 12 years maturing August 2028
Tiernan O’Rourke, Chief Financial Officer at Stockland, said: “The issuance is in line with our ongoing capital management program, including refinancing scheduled debt maturities, thereby ensuring we retain diversified and long-dated sources of debt.”
Stockland’s pro forma Weighted Average Debt Maturing at 30 June 2016 would increase from 5.3 to 5.9 years, taking into account this funding.