Merlin Properties has signed a new syndicated loan for a total of 3.750 billion euros with the aim of reorganizing its corporate debt and securing the financing needed for the coming years, especially linked to the rollout of its data center program.
As the company has communicated to the Comisión Nacional del Mercado de Valores (CNMV), this is a corporate sustainable financing agreement for 3.750 billion euros, signed with a banking syndicate made up of both Spanish and international entities.
The transaction is structured in two blocks: a Tranche A or "Term Loan" and a Tranche B or "Revolving Credi Facility". Tranche A includes two disbursements, both with a maturity date of April 30, 2032: an initial one of 725 million euros and an additional one of 1.525 billion.
The amount of 725 million will be available on November 3 and will be used for the early repayment of the syndicated loan maturing in 2028. For its part, the remaining 1.525 billion may be used until April 30, 2027 and will be allocated to amortize the 500 million bond maturing on July 3, 2027.
Merlin extends deadlines and strengthens its financial structure
In a complementary manner, the company has carried out the expansion of Tranche B, which goes from 740 million to 1.500 billion euros. Merlin details that this financing has been closed at an average cost of MS + 100 basis points and allows extending the average life of its debt from 3.7 years to 5.3 years.
At the same time, the bond maturing on November 2, 2026 has been amortized, for a total of 800 million euros, using for this treasury resources already available, originating from financings formalized in previous years.
With this set of measures, the company emphasizes that it strengthens its credit profile, eliminates the maturities scheduled for the next three years and gains broad financial flexibility to deploy its growth plan, while maintaining a reduced leverage level of 25%, calculated in terms of LTV ("Loan to Value").