MERLIN Properties successfully issues € 300 million 12-year unsecured 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 300 million euros (the “Issue”).

The Notes have been issued with a maturity of 12 years, at an issue price of 98.718% of nominal value, and an annual coupon of 2.375% (midswap + 150.8 bps). Subscription and payment for the Notes is expected on 18 September 2017.

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 existing mortgage loans as well as for general corporate purposes.

With this financing, MERLIN Properties will further optimize its capital structure by extending the average maturity while reducing the average cost of debt at the same time.

This transaction gives evidence of the strong momentum in the debt capital markets and the excellent profile that MERLIN represents, being the first time that a Spanish real estate issuer has issued bonds with a maturity longer than 10 years. Through this issuance, MERLIN also becomes the only BBB rated real estate company in Europe to issue 12-year maturity bonds in the last year.

Ndp Bond isssuance