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 800 million Euros (the 'Issue').
The Notes have been issued with a maturity of 10 years, at an issue price of 98.931% of nominal value, and an annual coupon of 1.875% (midswap + 160 bps). Subscription and payment for the Notes is expected on 2 November 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 500 million euro bridge to bond facility signed by Metrovacesa in April, maturing on April 2018, as well as for general corporate purposes.
With this financing, MERLIN Properties further optimizes its capital structure. Average maturity has been extended to 6.8 years (from 5.7 years) and debt with fixed rate has been raised to 91.8% (from 80.7%). Average cost of debt is now 2.28%.
Ismael Clemente commented: 'through this transaction debt maturities for the next five years have been reduced to a minimum and our exposure to interest rate rises represents less than 10% of our debt. MERLIN increases its annual free cash flow to shareholders and is hedged against future upwards movements in interest rates'.
About MERLIN Properties
MERLIN Properties SOCIMI, S.A. (MC:MRL) is the largest real estate company trading on the Spanish Stock Exchange, with a market capitalization of approximately 3,300 million euros, specialized in the acquisition and management of commercial property in the Iberian region. MERLIN Properties mainly invests in offices, shopping centers and logistics facilities, within the Core and Core Plus segments, forming part of the benchmark IBEX 35, Euro STOXX 600, FTSE EPRA/NAREIT Global Real Estate, GPR Global Index, GPR-250 Index, and MSCI Small Caps indices.
MERLIN Properties SOCIMI SA published this content on 25 October 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 25 October 2016 17:30:00 UTC.
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Merlin Properties SOCIMI, S.A. is a listed Real Estate Investment Trust (REIT). The Company acquires, actively manages, invests and selectively rotates commercial real estate assets in Spain and Portugal.
Rental income breaks down by type of asset between offices (53.6%), shopping centers (26.4%), logistics sites (16.9%) and other (3.1%).
In 2023, the asset portfolio of Merlin Properties SOCIMI, S.A. was worth EUR 11.3 billion and generated EUR 475.6 million of rental income.
The company aims to remunerate the shareholders through a combination of annual dividend distribution and value enhancement of the EPRA NAV of the Company.
MERLIN PROPERTIES SOCIMI, S.A. 
