Merlin Debuts On Capital Markets With €850M Bond Issue

18 April 2016 – Invertia

The Socimi has debuted on the capital markets with this operation, through which the firm seeks to refinance some of the debt it inherited from Testa.

Specifically, Merlin explains that this debt issue fits within its strategy to reduce the debt it holds after it completed the refinancing of the debt relating to Testa, the real estate company that it acquired from Sacyr, at the end of 2015 .

At that time, the Socimi signed a loan for €1,700 million with ten overseas banks, which was structured into two tranches of €850 million each, one of which is due to expire in December 2017 and which will be repaid through the bond issue.

Merlin is debuting on the debt market after it entered the Ibex 35 at the beginning of this year and managed to achieve an investment grade rating from Standard & Poors, which awarded it a BBB rating.

As such, the debt issue is taking place whilst the Socimi Merlin completes its purchase of the remaining 22% stake of Testa’s share capital, which is still owned by Sacyr, in an operation that must be closed before the end of June, as established in the agreement that the two companies signed last year. The ultimate goal of the company is to merge the two companies to create the largest listed real estate firm.

Original story: Invertia

Translation: Carmel Drake

Saint Croix Socimi To Debut On The MARF

1 October 2015 – Expansión

The Socimi Sainx Croix, owned by the Colomer family, registered its first fixed income program yesterday, for up to €80 million on the Alternative Fixed Income Market (‘Mercado Alternativo de Renta Fija’ or MARF), a financing option launched by the Government in 2013 to facilitate SMEs’ access to capital markets. In this way, Saint Croix became the first Socimi to turn to this market in search of financing.

According to a statement by the BME yesterday, Saint Croix plans to allocate the funds that it will raise through this bond issue to the acquisition of new assets and the maintenance of existing assets in its current portfolio.

Renta 4 coordinated the management and structuring of the plan and will act as the underwriter for the bond issues that are carried out. Axesor Ratings has assigned the issuer a BBB rating with a stable outlook, in other words, it is classified it as investment grade. Ramón y Cajal Abogados was engaged to provide legal advice for the design and registration of the program.

Saint Croix Holding, which relocated its headquarters to Luxembourg from Spain in 2014, owns 150,000 m2 of rentable space, with a total value of €284 million as at 30 June 2015. Its assets include several hotels, located in Huelva and Madrid, as well as the headquarters of CLH. The Socimi’s owners, the Colomer family, also own the real estate company Pryconsa.

The Socimi has included an explicit warning to investors in the bond issue brochure, about the political risks in Spain, making a clear reference to Cataluña (see page 32).

MARF

This  is a new debut for the MARF. In total, according to data from the BME, thirteen companies have decided to issue bonds through this market. Copasa, Pikolin, Tecnocom and Barceló are a few of the companies that have already successfully launched operations on this market.

Original story: Expansión (by D.B., M.S. and R.R.)

Translation: Carmel Drake