November 4 - Toll Group has negotiated its second issuance of US Private Placement (USPP) notes for the equivalent of USD250 million, which is anticipated to be drawn down on December 4, 2013.
Toll will issue the USPP notes across four tranches: split SGD125 million (USD100 million) fixed rate notes for a seven-year term, SGD25 million (USD20 million) floating rate notes for a seven-year term, HKD388 (USD50 million) million fixed rate notes for a ten-year term and USD80 million fixed rate notes for a ten-year term, which were converted to SGD floating debt.
The deal significantly reduces the group's refinancing requirements for the current financial year and is an important step in Toll's on-going capital management, says Toll's chief financial officer, Grant Devonport.
"It is a unique transaction in that it is the first time anyone has raised Singapore dollars (SGD) and Hong Kong dollars (HKD) in the USPP market," he added. "We will look to complete the refinancing of our remaining Singapore dollar and Hong Kong dollar funding in the near term, and do not expect a material change in Toll's interest expense."
The US Private Placement market is an unrated debt market that offers long term funding from a sophisticated investor base.