Hotel Properties Ltd. is pricing a five-year benchmark Singapore dollar bond in the 4.30 percent area, according to a client note seen by Shenton Wire.
The landing guidance for the pricing is 4 percent to 4.2 percent, the client note said.
The benchmark size suggests the bond, which will be issued under Hotel Properties’ S$1 billion multicurrency debt issuance program, will be at least S$200 million.
The maturity date will be 30 March 2027, with interest payment dates twice a year, the client note said.
The client note said the net proceeds would be used to refinance existing borrowings and for working capital requirements, including redeeming the S$150 million 4.65 percent subordinated perpetual securities callable in May 2022.
The joint bookrunners are DBS Bank and UOB, the note said.
Hotel Properties has a market cap of S$1.745 billion, and it has interests in 38 hotels under brands including Four Seasons, Hilton International, COMO Hotels, Intercontinental Hotels Group, Six Senses Hotels and Marriott International, the client note said.
“On top of an ever-increasing vaccination rate and the easing of borders across the world, their popular hotel brands will certainly be the forefront for the pent-up demand from travel enthusiasts. Thus, we believe that HPL is positioned well for travel recovery,” the client note said.