French retail REIT Mercialys has announced it is raising €150 mln through the issue of a €150 mln bond via a private placement.
The company said that it will use the proceeds for general corporate purposes, including the partial refinancing of a €480 bond maturing in March 2019 which carries a coupon of 4.125%.
The new bond, maturing in 2027, has a yield of mid-swap +110 basis points.
'This new 10-year bond financing line, raised under very favorable conditions, helps extend the average maturity of Mercialys’ debt, while keeping the Company’s financing costs at extremely competitive levels,' Mercialys said in a statement. The issue offers a 'significant' spread compared with the average capitalization rate for the company’s real estate assets which stood at 5.14% at end-June 2017, it added.
Deutsche Bank acted as bookrunner.
Mercialys focuses exclusively on retail property. At June 30,
2017, Mercialys owned a portfolio valued at €3.7 bn.
