FCT eyes more debt financing to fund Northpoint City acquisition

The acquisition may be financed either with or without the issuance of perpetual securities.

Frasers Centrepoint Trust will draw down additional debt financing to pay for its recent acquisition of Northpoint City, according to a bourse filing.

Proceeds from the company’s recent equity fundraising have been used to repay its existing debt.

The acquisition of Northpoint City’s south wing may be financed either with or without the issuance of perpetual securities.

An illustrative coupon of 4.2% per annum was assumed for the potential issuance of perpetual securities, whilst an all-in interest rate of 3.3% was assumed for new debt financing.

“The final decision regarding the funding structure will be made by the manager at the appropriate time, taking into account the prevailing market conditions,” said FCT’s manager.