Published on 12 Jul 2019.
RAM Ratings has assigned final ratings, as listed in the table below, to Notable Vision Sdn Bhd’s (NVSB or the Issuer) RM477.48 mil Notes Series 2019-A (the Notes Series 2019-A), issued under its existing RM750 mil MTN Programme (2014/2034) (the Programme). Concurrent with the listing of Frasers Hospitality Trust (FHT) on the Main Board of the Singapore Exchange Securities Trading Limited in July 2014, NVSB was incorporated as a special-purpose funding vehicle to facilitate FHT’s acquisition of The Westin Kuala Lumpur (The Westin KL or the Property). FHT is a stapled trust comprising Frasers Hospitality Real Estate Investment Trust (FH-REIT) and Frasers Hospitality Business Trust. The acquisition of the Property had been made by way of the issuance of RM456.5 mil First MTNs (the First MTNs) under the Programme. The main objective of the Notes Series 2019-A – the second issuance under the Programme – is to refinance the First MTNs on their expected maturity date of 12 July 2019. The Class B and Class C Junior MTNs remain subscribed by FHT Malaysia Pte. Ltd. – a wholly-owned subsidiary of FH-REIT – to mirror its ownership of The Westin KL. Concurrently, RAM Ratings has withdrawn the ratings of the First MTNs.
Notes Series 2019-A
Class A Senior MTNs
12 July 2024
12 January 2026
Class B Junior MTNs
Class C Junior MTNs
After reviewing the transaction documents for the Notes Series 2019-A, RAM Ratings is satisfied that these reflect the intended transaction structure represented during the preliminary rating exercise. The key terms of the Notes Series 2019-A remain the same as that of the First MTNs, except that the coupon liquidity support is funded by a cash reserve, instead of a liquidity facility. Coupon payments on the MTNs will continue to stem from lease obligations, guaranteed by Frasers Property Limited – the sponsor of FHT – under a 20-year lease agreement expiring in May 2036. The bullet principal redemption is envisaged to be funded either via a refinancing exercise by subsequent issuance of MTNs under the Programme, or through the exercise of the Property Call Option granted to FHT, or if this fails, by the disposal of the Property upon the occurrence of a trigger event.
Teoh Tze Yit
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Ratings on Notable Vision Sdn Bhd