Building on its outstanding operational performances and capitalizing on the opportunity offered by a still extremely buoyant credit market, Mercialys is announcing that it has today carried out a new bond issue, through a private placement, for a nominal total of €150m, maturing in 2027, with a yield of 10-year mid-swap + 110 basis points.
This operation is in line with the refinancing strategy rolled out by the company, whose FR0011223692 issue with an outstanding nominal of €479.7m and 4.125% coupon is due to mature on March 26, 2019.
This new 10-year bond financing line, raised under very favourable conditions, helps extend the average maturity of Mercialys’ debt while keeping the Company’s financing costs at extremely competitive levels. In addition, it offers a significant spread compared with the average capitalization rate for the company’s real estate assets (5.14% at end-June 2017) and the pipeline’s target net yield on cost (6.6% for a total investment of €586m).
Deutsche Bank acted as bookrunner.
