Dream Global REIT announced that it has priced its previously disclosed inaugural European offering of €375m ($544.3m) aggregate principal amount of senior unsecured notes. The notes will bear interest at a rate of 1.375% per annum (representing the coupon rate of interest) and will mature on December 21, 2021. The notes were sold at a price of €99.575 per €100.00 principal amount of notes, for an effective yield if held to maturity of 1.474% per annum. The notes will be issued by a finance subsidiary of the REIT and guaranteed by the REIT.
The net proceeds from the issuance of the notes will be used to partially fund the purchase price for the REIT’s previously disclosed transaction relating to a portfolio of 135 office and light industrial properties located in the Netherlands. After consideration of the Transaction, Moody’s Investors Service affirmed the REIT’s long-term issuer credit rating and assigned a rating to the notes of Baa3 with a stable outlook.
Closing of the offering of notes is anticipated to occur on July 27, 2017, concurrently with the closing of the Transaction referred to above, and is subject to customary conditions.
Morgan Stanley & Co. International acted as the underwriter and sole lead manager for the offering of notes.
