12 September 2017 – Expansión
Merlin Properties has returned to the capital market, taking the Socimi‘s visits so far this year to two. Yesterday, it managed to raise €300 million from the issue of 12-year bonds, in an operation for which it offered a coupon of 2.375%
To effectively manage the placement, Merlin engaged the services of Morgan Stanley. The issuance received robust demand, which allowed the firm to reduce the cost from 150 basis points above mid-swap (the reference rate for the placement of fixed income bonds in euros) considered initially, to 140 basis points above mid-swap.
This is the fifth issue that Merlin Properties has undertaken since its constitution. The first three, for a cumulative sum of €2,350 million, were carried out in 2016. This year, the Socimi has already raised €900 million.
According to the company, the funds raised will be used to early repay its mortgage debt, as well as for “general corporate purposes”. Merlin is the fourth non-financial company to resort to the debt market after Telefónica, Iberdrola and Cortefiel.
Original story: Expansión (by A. Stumpf)
Translation: Carmel Drake