HSBC has wrapped up roadshows for a seven-year dollar-equivalent S$433 million ($256 million) commercial mortgage-backed securitization (CMBS) for CapitaMall Trust. The deal will be the fourth issuance from the secured medium term note facility via Silver Maple Investment Corp.
The soft bullet structured deal has a legal final maturity of 2014 and will also include a S$70 million revolving credit facility.
It will also mark the fourth international Reit securitization out of Singapore so far this year following the success earlier this year of retail operators Prime and Suntec City and industrial property manager Ascendas. Who launched Eu320 million, Eu190 million and Eu165 million deals, respectively.
Asian Roadshows were held in Singapore and Hong Kong, while European shows were held in London, Dublin and Paris. Books opened on Monday (October 17) in Asia, with pricing expected by the end of the week. Price guidance has been set at 24bp to 25bp over Libor.
CapitaMall's challenge will be to achieve a similarly tight pricing differential to these deals. The most recent deal was Prime's five-year deal, which was launched in September. That deal priced at 22bp over Euribor.
Suntec's Platinum AC1 deal had a five-year maturity and aggressive launch spread of 16bp over Euribor. At the time this represented an extremely slim premium of only 2bp over similarly rated European credits such as Prologic, which had just come to market before it with a Eu389 million deal.
At 23bp, Ascendas' A-Reit deal came 7bp wider than Suntec's but markets had noticeably weakened in that time. Indeed, A-Reit's spread represented only a 3bp premium over a similarly rated Society General CMBS - a six-year ST400 million offer via SPV White Tower 2005-1 Plc.
HSBC will act as Trustee. Fitch, Standard and Poor's and Moody's have given the notes a AAA/AAA/Aaa rating.
The funds will be used for capex and working capital requirements, but will primarily fund the purchase of four commercial properties in Singapore: Parco Bugis Junction, Hougang Plaza Units, Jurong Entertainment Centre and Sembawang Shopping Centre.
