All three loan facilities come with a covenant stating that Keppel REIT would have to prepay all outstanding loans if Keppel REIT Management ceases to manage Keppel REIT or be a wholly-owned subsidiary of Keppel Capital Holdings, and if Keppel Capital Holdings does not appoint a wholly-owned subsidiary as a substitute manager of Keppel REIT.
If the covenants of all three loan facilities are breached and a cross default under other borrowings of the Keppel REIT group occurs, the aggregate level of facilities affected would be about $2,857 million. The sum excludes interest charges and fees.
Earlier, on Nov 25, Keppel REIT said it had secured three loan facilities totalling A$440 million ($378.62 million). The usage of those loan facilities were also not specified.
Keppel REIT units closed 0.52% higher at 97.5 cents on Dec 24. It is up by 12.29% year to date.
