NOTES TO THE
FINANCIAL STATEMENTS
Year ended 31 December 2014
10 LOANS AND BORROWINGS (CONT’D)
The loans and borrowings comprise the following:
(1)
Long Term Unsecured Term Loans and Revolving Credit Facility
The Group has several outstanding long term unsecured term loans and revolving credit facilities to fund
various investment property acquisitions in Japan as at beginning of the financial year.
On 25 March 2014, the Group has further secured and drawn down a revolving credit facility amounting to
JPY3,250 million ($35.9 million) to fund the acquisition of three new properties in Japan.
In August 2014 and September 2014, the Group has completed the refinancing and terming out of
all loans due in FY2015, amounting JPY13,080 million (approximately $157.7 million) via the following
refinancing initiatives:
(i)
On 18 July 2014, the Group has concluded an extension of the existing loan facility of JPY6,830
million (approximately $82.4 million) till FY2019; and
(ii)
On 26 August 2014, the Group has secured a 6-year revolving credit facility and subsequently drawn
down $75.2 million on 5 September 2014. In order to maintain a natural hedge, the $75.2 million
revolving credit facility was overlaid with a cross currency interest rate swap to realign it into an
effective JPY loan for the purpose of refinancing the remaining JPY6,250 million loans.
On 12 December 2014, the Group has entered into a JPY4,500 million (approximately $49.7 million) 5-year
committed and unsecured term loan facility (“5-year TLF”) for the purpose of funding the acquisitions of 2
nursing home properties in Japan completed on 12 December 2014 and 6 January 2015. As the Group has
put in place a bridging loan for the acquisition of two nursing home properties in Japan, this 5-year TLF
remain undrawn as at 31 December 2014.
As at 31 December 2014, the total facilities drawn of JPY31,760 million ($350.6 million) (2013: JPY34,760
million ($419.2 million)) and $155.2 million (2013: $80.0 million) (the “Long Term Facilities”) were committed,
unsecured and ranked
pari passu
with all the other present and future unsecured debt obligations of
Parkway Life REIT. Interest on the Long Term Facilities is subjected to re-pricing on a monthly or quarterly
basis or any other interest period as mutually agreed between the lenders and the Group, and is based on
the relevant floating rate plus a margin.
In addition, the Group entered into interest rate swaps with various counterparties to provide fixed rate
funding for the above Long Term Facilities. Details of these interest rate swaps are set out in Note 6.
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