MERLIN Properties successfully issues € 850 million 7-year bonds

MERLIN Properties Socimi, S.A., (MC:MRL), the largest real estate company listed on the Spanish Stock Exchange, specialising in the acquisition and management of commercial real estate assets in the Iberian region, has announced today the issuance of unsubordinated ordinary bonds in the Euromarket (the “Notes”) for an aggregate principal amount of 850 million Euros (the “Issue”). The Notes have been issued at par with a maturity of 7 years and an annual coupon of 2.225%. Subscription and payment for the Notes is expected on 25 April 2016.

The terms and conditions of the Bonds, as well as their representation, are subject to English law. In addition, it is expected that the Bonds are admitted to listing on the Luxembourg Stock Exchange.

The overall proceeds will be devoted to repay the outstanding 850 million euro bridge to bond facility, maturing on December 2017. The refinancing of this facility has been executed well ahead the calendar foreseen by the Company.

With this financing, MERLIN Properties further optimizes its capital structure while diversifying its sources of financing. Average maturity has been extended to 7 years, debt with fixed rate has been raised to 87% and bank financing has been reduced to 65% of total debt. Average cost of debt is now 2.33%.

Ismael Clemente commented: “this successful inaugural bond issuance has proven the strong credit profile of MERLIN and an opportune timing, as evidenced by the overwhelming appetite in the market for the Notes, with an oversubscription ratio of 4 times. Furthermore, the Company has accomplished well ahead of calendar and at a better cost than expected the objective of optimizing its capital structure and diversifying its financial sources”.

Press release_Bonds issue_140416 EN