Keppel REIT unit secures fresh credit lines worth $160m

A cross-default could put $2.46b of group facilities at risk.

A Keppel REIT unit has obtained two revolving credit facilities totalling $100m and $59.5m (A$65m).

The wholly owned subsidiary, Keppel REIT Fin. Company Pte. Ltd. secured the facilities on 4 June, according to a bourse filing.

The $100m facility may become repayable within five business days if Keppel REIT Management Limited ceases to be the REIT’s manager or ceases to be wholly owned by Keppel Ltd.

The repayment requirement would apply only if no wholly owned Keppel Ltd. unit is appointed as replacement manager and the lender and borrower fail to agree on revised facility terms.

Meanwhile, the second credit line may become repayable within 10 business days if the manager changes and no wholly owned Keppel Ltd. unit is appointed as replacement manager.

The REIT’s manager said about $2.46b of group facilities could be affected if the conditions trigger a cross-default on Keppel REIT’s other borrowings. 

This excludes interest, fees, and the new loan facilities.

$1 = A$1.09