OSK Trustees Bhd, the trustee of the proposed Sunway real estate investment trust (SunREIT), yesterday inked a facilities agreement and the security documents in relation to a term loan facility of RM1 billion and a revolving credit facility of RM150 million.
In a statement yesterday, Sunway City (SunCity) said the term loan would be used to partially finance the acquisition of the properties by SunREIT and to provide the reserve for the debt service reserve account while the revolving credit facility was to be used for working capital requirements.
It said the facility was granted by a syndicate of lead arrangers comprising RHB Bank Bhd, HSBC Bank (Malaysia) Bhd, CIMB Bank Bhd, OCBC Bank (Malaysia) Bhd and Public Bank Bhd.
SunCity said the vendors of properties would use part of the proceeds arising from the disposal to repay loans to enable the properties to be delivered free from encumbrances to the trustee.
Written by Financial Daily
This article appeared in The Edge Financial Daily, June 17, 2010.
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