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Merlin Issues €600M In Debt With 8-Year Maturity

Posted by: In: Real Estate 18 May 2017 Comments: 0 Tags: , , , , , , , , , , ,

18 May 2017 – Expansión

Debt issues in Spain, which have focused on the financial sector in recent times, have now reached Merlin Properties. The Socimi has placed €600 million in debt over eight years, which will mature in May 2020, at a price of 99.417% of the nominal value and with an annual coupon of 1.75% (125 basis points above midswap). The subscription and disbursement of the issue will take place on 26 May.

Merlin has received requests for the issue amounting to €1,200 million, i.e. double the amount that will be awarded in the end. This level of demand has allowed it to lower the cost of the operation.

The price considered initially stood at 135 basis points above the reference index for fixed income or midswap issues. The strength of demand has reduced that premium to 125 points.

To carry out the operation, Merlin has engaged the services of Crédit Agricole, Nabca IMI, Goldman Sachs, ING and JPMorgan.

At the General Shareholders’ Meeting three weeks ago, the CEO of the company, Ismael Clemente (pictured above), confirmed the plans to resort to the debt markets, although at the time he was unsure as to whether they would do so through convertible debt or senior debt issues, or by refinancing the bank debt.

The last few weeks have reinforced the truce in the debt market in Europe, after Emmanuel Macron secured victory over Marine Le Pen in the French elections.

Original story: Expansión

Translation: Carmel Drake

The post Merlin Issues €600M In Debt With 8-Year Maturity appeared first on Aura Real Estate Experts.

Source:: AURA Real Estate Experts


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