Hotel Properties prices $150 million perpetual securities at 4.38%
Net proceeds will be used to refinance existing borrowings and fund working capital requirements
[SINGAPORE] Real estate player Hotel Properties Ltd (HPL) has priced S$150 million in perpetual securities at 4.38 per cent.
The securities, issued under HPL’s S$2 billion multicurrency debt issuance programme, have no fixed maturity and are callable from March 25, 2031. Subsequent resets will happen every five years thereafter.
Distributions will be paid semi-annually in March and September, with the first payment scheduled for Sep 25, 2026.
The initial rate of 4.38 per cent will apply until the first reset date in March 2031, after which it will be reset at the equivalent of the five-year Singapore Overnight Rate Average Overnight Index Swap plus an initial spread of 2.597 per cent and a step-up margin of 1 per cent.
An additional margin of 3 per cent may apply for a change of control event, HPL said on Wednesday (Mar 18).
The group expects to issue the securities on Mar 25. It will apply for their listing and quotation on the Singapore Exchange.
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Net proceeds from the debt issuance will go towards refinancing existing borrowings and funding working capital requirements for the group and its subsidiaries, HPL said.
HPL on Feb 27 reported a net loss of S$57.7 million for the six months ended Dec 31, 2025, reversing from a net profit of S$32.1 million the year before.
The results translated to a loss per share of S$0.1174, compared with its earnings per share of S$0.0547 for H2 FY2024.
Shares of HPL rose 0.4 per cent or S$0.02 to close at S$4.70 on Wednesday, before the news.
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