FIBRA Macquarie México Announces Signing of US$685 Million Unsecured Refinancing Program

Highlights

• Signing of US$435 million unsecured bank credit agreement
• Signing of US$250 million unsecured seven-year private placement note purchase agreement
• Repayment of US$717 million of secured loans expected on June 30, 2016

MEXICO CITY--(BUSINESS WIRE)-- FIBRA Macquarie México (FIBRA Macquarie) (BMV: FIBRAMQ) today announced the signing of binding agreements in respect of a US$685 million unsecured refinancing program (the Refinancing). The initial drawings of US$653 million, along with US$64 million cash on hand, will be used to prepay FIBRA Macquarie’s asset-level US$717 million of secured loans that mature in December 2017.

Refinancing the secured loans is an important component of FIBRA Macquarie’s key strategic objective to transition to a predominately unsecured debt capital structure. The Refinancing is expected to deliver significant benefits, including:

• extension of weighted average tenor of debt outstanding to 4.2 years, compared to 1.4 years, as of June 2016, and a smoother refinancing profile;
• securing long-term, fixed-rate funding at competitive rates, with a pro forma weighted average cost of debt of 5.1 percent per annum;
• enhanced asset substitution flexibility to facilitate ongoing portfolio management initiatives, including an asset recycling program;
• diversification of financing sources to a broader base of local and international banks, as well as leading US insurance companies; and
• a more efficient and flexible balance sheet, reducing surplus cash and adding a revolving credit facility for liquidity requirements.

“We are pleased with the support this offering has received from the investment community,” said Juan Monroy, chief executive officer of FIBRA Macquarie. “With the signing of these agreements we have taken an important step toward both strengthening our balance sheet and increasing our financial flexibility.”

US$435 Million Credit Facility (the Credit Facility)

The Credit Facility was oversubscribed resulting in the upsizing of the Credit Facility to US$435 million. The Credit Facility is comprised of (i) a US$220 million non-amortizing, five-year term loan and (ii) a US$215 million equivalent, four-year revolving credit facility that is available for general corporate purposes including asset acquisitions. The revolving credit facility is comprised of a US$139 million US dollar-denominated tranche and a Ps. 1,425 million (equivalent to US$76 million) Mexican Peso-denominated tranche. US$182 million is expected to be drawn under the revolving credit facility at closing. The tenors of the term loan and the revolving facilities are inclusive of one-year extension options exercisable at FIBRA Macquarie’s discretion, subject to satisfaction of customary conditions.

The term loan tranche of the Credit Facility bears interest at a variable rate of LIBOR plus a margin of 312.5 basis points. The US Dollar and Mexican Peso revolving tranches of the Credit Facility will bear interest at variable rates of LIBOR plus 275.0 basis points and Mexican TIIE plus 245.0 basis points, respectively. FIBRA Macquarie expects to enter into interest rate swaps to fix the floating rate of the term loan.

US$250 Million Private Placement Notes (the Notes)

The Notes will be placed with a consortium of leading US insurance companies, representing the first time this type of unsecured funding has been accessed by a Mexican FIBRA. The seven-year Notes are non-amortizing and have a competitive fixed-rate coupon of 5.55 percent per annum. The financial covenants of the Credit Facility and the Notes are substantially consistent, allowing for streamlined compliance monitoring.

The financial closing of the Refinancing is expected to occur on June 30, 2016.

FIBRA Macquarie will continue evaluating opportunities to access the long-term, fixed-rate unsecured debt markets to repay amounts outstanding under the revolving credit facility and further increase liquidity.

Receipt of VAT Refund

On a separate note, FIBRA Macquarie today also announced the receipt of a Value Added Tax (VAT) refund totaling approximately Ps. 194 million, which includes an inflation adjustment of approximately Ps. 4 million. The VAT was paid in connection with the acquisition of a ten-property industrial portfolio located in the northern Mexico cities of Monterrey, Reynosa, Tijuana, Ciudad Juarez and Saltillo in the third quarter of 2015.

About FIBRA Macquarie

FIBRA Macquarie México (FIBRA Macquarie) (BMV: FIBRAMQ) is a real estate investment trust (fideicomiso de inversión en bienes raíces), or FIBRA, listed on the Mexican Stock Exchange (Bolsa Mexicana de Valores) targeting industrial, retail and office real estate opportunities in Mexico, with a primary focus on stabilized income-producing properties. FIBRA Macquarie’s portfolio consists of 276 industrial properties and 17 retail/office properties, located in 24 cities across 19 Mexican states as of March 31, 2016. Nine of the retail/office properties are held through a 50/50 joint venture with Grupo Frisa. FIBRA Macquarie is managed by Macquarie México Real Estate Management, S.A. de C.V. which operates within the Macquarie Infrastructure and Real Assets division of Macquarie Group. For additional information about FIBRA Macquarie, please visit www.fibramacquarie.com.

Macquarie Infrastructure and Real Assets is a business within the Macquarie Asset Management division of Macquarie Group and a global alternative asset manager focused on real estate, infrastructure, agriculture and energy assets. Macquarie Infrastructure and Real Assets has significant expertise over the entire investment lifecycle, with capabilities in investment sourcing, investment management, investment realization and investor relations. Established in 1996, Macquarie Infrastructure and Real Assets has approximately US$104.6 billion of total assets under management as of March 31, 2016.

About Macquarie Group

Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Macquarie’s main business focus is making returns by providing a diversified range of services to clients. Macquarie acts on behalf of institutional, corporate and retail clients and counterparties around the world. Founded in 1969, Macquarie operates in more than 70 office locations in 28 countries. Macquarie employs approximately 14,372 people and has assets under management of more than $367 billion (as of March 31, 2016).

Cautionary Note Regarding Forward-looking Statements

This release may contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ significantly from these forward-looking statements and we undertake no obligation to update any forward-looking statements.

None of the entities noted in this document is an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities.

THIS RELEASE IS NOT AN OFFER FOR SALE OF SECURITIES IN THE UNITED STATES, AND SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED.

THIS ANNOUNCEMENT IS NOT FOR RELEASE IN ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA.

All figures in this release are subject to rounding and stated in US Dollar or US Dollar-equivalent amounts, unless otherwise specified. Any arithmetic inconsistencies are due to rounding.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160628005559/en/

FIBRA Macquarie México
Investor relations:
Tel: +52 (55) 9178 7763
[email protected]
or
Jay Davis, +1 212-231-1825
[email protected]
or
For press queries:
CarralSierra PR & Strategic Communications
Jose Manuel Sierra, +52 (55) 5286 0793
Cell: +52 1 (55) 5105 5907
[email protected]
or
Sonia Figueroa, +52 (55) 6273 6363 / 4195 6727
Cell: +52 1 (55) 55 6111 8599
[email protected]

Source: FIBRA Macquarie México

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