10 November 2017
Dexus successfully prices long-dated US Private Placement
Dexus today announced that it has successfully priced a long-dated US Private Placement (USPP) offering for a total of A$653 million (equivalent), including both US$ and A$ tranches.
The USPP issuance will comprise four tranches of notes totalling US$385 million and A$150 million across tenors of 12 and 15 years, equating to an average duration of 13.5 years. After converting the US dollar tranches into Australian dollars, the average margin on the US$ tranches will be 175 basis points over BBSW. Further, the A$ tranche has been issued at an average fixed coupon of 4.68%.
Dexus Chief Financial Officer, Alison Harrop said: “In what is a very pleasing endorsement of our active capital management strategy, the offering was significantly oversubscribed from the initial US$150 million offering supported by a combination of both new and existing investors, resulting in the decision to increase the issuance amount.
“This issue continues to improve our diversification of funding sources and will extend the average duration of debt to approximately 7.3 years.”
The proceeds from this new long-dated debt will be used to repay existing debt facilities.