Refinancing of existing unsecured bank facility
Improves cost of borrowing, extends term loan and committed revolver line until 2027
Sustainability-linked with inclusion of ESG KPI
MEXICO CITY–(BUSINESS WIRE)–FIBRA Macquarie México (FIBRA Macquarie) (BMV: FIBRAMQ) announced the signing of a US$425.0 million equivalent sustainability-linked unsecured credit facility which is expected to close on Tuesday, April 5, 2022. FIBRA Macquarie will use the new sustainability-linked facility to repay the amounts drawn under the unsecured credit facility that was due to expire on April 1, 2024.
The new facility will deliver improved economics including reduced margins and does not include any extension fees or scheduled margin increases throughout the term of the facility. As a result, the transaction enhances FIBRA Macquarie’s debt profile by improving overall debt metrics and extending the weighted average maturity of its debt.
Simon Hanna, FIBRA Macquarie’s chief financial officer stated, “This refinancing transaction has been timed to take advantage of a strong debt market backdrop, with important improvements being made to the financing economics and our overall balance sheet position, including an extension of our committed revolver line through to 2027. We are excited to welcome a broadened syndicate of lenders, with the facility now being supported by twelve international and local financial institutions. The inclusion of a green building KPI recognizes the importance of incorporating our ESG strategy into all elements of our business, including debt financing.”
US$425 million five-year sustainability-linked unsecured credit facility
The unsecured credit facility comprises (i) a US$180.0 million non-amortizing, five-year term loan and (ii) a US$245.0 million equivalent, five-year committed revolving credit facility that is available for general corporate purposes, including asset investments. The committed revolving credit facility is comprised of a US$180.0 million US Dollar-denominated tranche and a Ps. 1,300 million (equivalent to US$65.0 million) Mexican Peso-denominated tranche.
The term loan is expected to bear interest at a variable rate of 90-day term SOFR plus a credit spread margin of 200 basis points (excluding an ESG KPI credit spread adjustment of +/- 5 basis points), representing a 50 basis points credit spread compression from the existing unsecured term loan being repaid.
FIBRA Macquarie is continuing with its strategy to maintain interest rate swaps on the majority of the US$180.0 million term loan.
The US Dollar and Mexican Peso revolving tranches are expected to bear interest at variable rates of SOFR plus 200 basis points and Mexican TIIE plus 175 basis points, respectively. The new revolver facility represents a credit spread compression of 50 basis points compared to the revolver facility being replaced.
Sustainability-linked KPI
As part of the credit agreement, a sustainability-linked KPI has been included which is aligned to FIBRA Macquarie’s aim of increasing the coverage of its green building certified properties. To the extent that FIBRA Macquarie achieves an annual target to ultimately obtain 40% green building certified coverage of its Industrial portfolio GLA by the end of 2026, FIBRA Macquarie will receive the benefit of a 5 basis points reduction in the applicable margin, otherwise a 5 basis points increase to the applicable margin will apply. As of 31 December 2021, FIBRA Macquarie’s Industrial portfolio comprised approximately 29,904 thousand square feet of GLA of which 6.9% has achieved a green building certification. The first KPI test date will be 31 December 2022, for the 5 basis points adjustment to take effect during the 2023 year.
The sustainability-linked loan has been reviewed by a leading independent ESG and corporate governance research, ratings and analytics firm, who have provided a Second Party Opinion to confirm its alignment with the Sustainability-Linked Loan Principles 2022.
Refinancing closing
The new credit facility is expected to close on or around April 5, 2022.
About FIBRA Macquarie
FIBRA Macquarie México (FIBRA Macquarie) (BMV:FIBRAMQ) is a real estate investment trust (fideicomiso de inversión en bienes raíces), or FIBRA, listed on the Mexican Stock Exchange (Bolsa Mexicana de Valores) targeting industrial, retail and office real estate opportunities in Mexico, with a primary focus on stabilized income-producing properties. FIBRA Macquarie’s portfolio consists of 236 industrial properties and 17 retail properties, located in 20 cities across 16 Mexican states as of December 31, 2021. Nine of the retail properties are held through a 50/50 joint venture. For additional information about FIBRA Macquarie, please visit www.fibramacquarie.com.
Cautionary Note Regarding Forward-looking Statements
This release may contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ significantly from these forward-looking statements and we undertake no obligation to update any forward-looking statements.
Other than Macquarie Bank Limited ABN 46 008 583 542 (“Macquarie Bank”), any Macquarie Group entity noted in this document is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these other Macquarie Group entities do not represent deposits or other liabilities of Macquarie Bank. Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these other Macquarie Group entities. In addition, if this document relates to an investment, (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment.
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Contacts
Investor relations contact:
Tel: +52 (55) 9178 7751
Nikki Sacks
Tel: +1 203 682 8263
Email: nikki.sacks@icrinc.com
For press queries, please contact:
FleishmanHillard México
Contact: Arturo García Arellano
Tel: +52 55 8664 0910
Email: arturo.garcia@fleishman.com
