UOL unit prices S$75 million fixed rate notes at 2.78%

[SINGAPORE] Property player UOL on Wednesday (Jul 9) announced that its wholly owned subsidiary UOL Treasury Services (UTS) has priced S$75 million worth of fixed rate notes at 2.78 per cent.

The notes will be issued as the second tranche of the fifth series under a S$2 billion multicurrency medium-term note programme established by UTS in November 2014.

They are payable semi-annually in arrears and expected to mature on Jul 15, 2032, UOL said.

Net proceeds from the issuance, after deducting issuance expenses, will be used for general corporate purposes of UOL and its subsidiary. These include the refinancing of existing borrowings and the financing of working capital and capital expenditure requirements of the group.

Under the programme, UOL will guarantee the notes unconditionally and irrevocably and its payment obligations as guarantor will rank pari passu with all other present and future unsecured obligations, excluding subordinated obligations and priorities created by the law, the property player said.

The notes will be issued to institutional investors and accredited investors in Singapore, as defined in Section 4A of the Securities and Futures Act 2001 of Singapore.

UOL said that investors should be aware that there may be restrictions on the secondary sale of the notes, under Section 276 of the Securities and Futures Act 2001.

The Singapore branch of CIMB Bank has been appointed as the sole dealer for the notes.

UOL’s portfolio includes hotel Parkroyal Collection Pickering.

Shares of UOL ended Wednesday 3.4 per cent or S$0.22 higher at S$6.61, before the news.