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CHARTER HALL GROUP — Capital/Financing Update 2018
May 24, 2018
64645_rns_2018-05-24_e111ef2f-9de2-48d0-8dd5-5110e1d1b59c.pdf
Capital/Financing Update
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Charter Hall Limited ASX Release ACN 113 531 150 Charter Hall Funds Management Limited Charter Hall Group Prices Level 20, No.1 Martin PlaceABN 31 082 991 786 10-Year Financing GPO Box 2704 Sydney NSW 2001Sydney NSW 2000 25 May 2018 T +61 2 8651 9000 F +61 2 9221 4655 www.charterhall.com.au
Charter Hall Group (Charter Hall or the Group) (ASX: CHC) today announces that it has priced a US$175 million (A$231.5 million) US Private Placement (USPP) which will mature in August 2028. The Notes were issued with a fixed US$ coupon which has been 100% hedged in Australian Dollars to floating rate, representing a margin of 2.05% over the Australian bank bill swap rate (BBSW).
The issuance is due to settle on 24 August 2018, subject to customary investor due diligence and documentation. The proceeds from the issuance are to be utilised to support CHC’s investment activities. RBC Capital Markets, LLC and HSBC Securities (USA) Inc. were joint lead placement agents and joint book-runners for the transaction.
Charter Hall’s Chief Financial Officer, Russell Proutt commented: “The issuance of these 10-year Notes and the recent 5-year term refinancing of the corporate facility, provide a combined weighted average debt maturity for the Group’s debt of 7.8 years. The financing also further diversifies debt sourcing for the business and capitalises on the strength of the underlying resilience, tenant quality and rental growth profile of the portfolio of property investments and management platform.”
The Group’s Managing Director and CEO, David Harrison further commented: “This is an exciting milestone for the Group to continue the excellent progress in accessing debt capital markets for our funds to now extend to Charter Hall. The greater debt capacity reflects the threefold increase in the Group’s balance sheet property investments over 5 years, whilst the net cash position and modest gearing levels of fund co-investments, provide considerable dry powder to further grow our investment portfolio”.
About Charter Hall
Charter Hall Group (ASX:CHC) is one of Australia’s leading fully integrated property groups, with over 25 years’ experience managing and investing in high quality property on behalf of institutional, wholesale and retail clients. Charter Hall has $22.5 billion of funds under management across the office, retail and industrial sectors. The Group has offices in Sydney, Melbourne, Brisbane, Adelaide and Perth.
The Group’s success is underpinned by a highly skilled and motivated team with diverse expertise across property sectors and risk-return profiles. Sustainability is a key element of its business approach and by ensuring its actions are commercially sound and make a difference to its people, customers and the environment, Charter Hall can make a positive impact for its investors, the community and the Group.
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For further information, please contact Russell Proutt Phil Schretzmeyer Chief Financial Officer Head of Treasury & Group Planning Charter Hall Charter Hall T +61 2 8651 9493 T +61 2 8651 9246 [email protected] [email protected] For media enquiries, please contact For investor enquiries, please contact Angus Booth Philip Cheetham Head of Communications and External Affairs Head of Listed Investor Relations Charter Hall Charter Hall T +61 2 8651 9223 T +61 2 8651 9214 [email protected] [email protected]
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