Goodman Property Trust manager Goodman (NZ) Ltd will issue $200 million of fixed interest rate bonds to wholesale investors on Friday 4 September after pricing 2 bond issues.
$150 million of 10-year bonds will pay 2.559%/year and $50 million of 8-year bonds will pay 2.262%/year.
Westpac Bank was lead manager for the transactions.
Goodman chief financial officer Andy Eakin expected S&P Global Ratings to rate the issues BBB+.
He said Goodman would use the proceeds to repay existing bank debt and provide general corporate funding for the trust, including prefunding the repayment of its $100 million of retail bonds maturing in December.
“We’ve taken advantage of historically low interest rates & very strong demand to secure additional long-term funding for the trust. Achieved at competitive margins, the issuance adds both tenor & further diversity to the trust’s debt book.
“With a weighted average term to expiry of 5.2 years, and more than $545 million of available liquidity following this issuance, the Goodman trust is well placed to take advantage of new development & investment opportunities.”
Mr Eakin said this capital management initiative would have no material impact on the trust’s earnings guidance for the current financial year.
The NZX-listed trust has market capitalisation of about $3.2 billion, ranking it in the top 20 of all listed investment vehicles and the largest listed property investment vehicle.
Attribution: Goodman release.