Fibra Macquarie signs $425 million sustability-linked credit facility

By Mary-Katherine Stinson

Lexington, Ky., April 4 – Fibra Macquarie Mexico signed an agreement for a $425 million equivalent credit facility which is expected to close April 5, according to a company news release.

The new facility contains reduced margins and does not have any extension fees or scheduled margin increases throughout its term.

The company intends to use the new sustainability-linked facility to refinance the amounts drawn under its existing credit facility that was due to expire on April 1, 2024.

The credit facility is comprised of a $180 million non-amortizing five-year term loan and a $245 million equivalent five-year committed revolving credit facility available for general corporate purposes, including asset investments.

The revolver is comprised of a $180 million dollar-denominated tranche and a Ps. 1.30 billion tranche.

The interest rate is SOFR plus 200 basis points for the term loan, excluding the ESG KPI credit spread adjustment of plus or minus five basis points, representing a 50 bps compression from an existing term loan being repaid. The company noted it is continuing with its strategy to maintain interest rate swaps on the majority of the $180 million term loan.

The dollar and peso revolving tranches will bear interest at SOFR plus 200 bps and Mexican TIIE plus 175 bps, respectively. These also represent a 50 bps compression compared to the revolver being replaced.

As part of the agreement, sustainability-linked key performance indicators have been included. If the company achieves an annual target to obtain 40% green building certified coverage of its industrial portfolio GLA by the end of 2026, there will be a five bps reduction in the applicable margin.

If this is not achieved, there will be a five bps increase.

As of Dec. 31, 6.9% of Fibra’s industrial portfolio has achieved green building certification.

The first KPI test date will be Dec. 31, 2022 for the bps point adjustment to take effect during 2023.

The sustainability-linked loan has been reviewed and certified by an independent ESG and corporate governance research, rating, and analytics firm which has confirmed its alignment with Sustainability Loan Principles 2022.

The company said the transaction enhances its debt profile by improving overall debt metrics and extending the weighted average maturity of its debt.

“This refinancing transaction has been timed to take advantage of a strong debt market backdrop, with important improvements being made to the financing economics and our overall balance sheet position, including an extension of our committed revolver line through to 2027. We are excited to welcome a broadened syndicate of lenders, with the facility now being supported by twelve international and local financial institutions,” chief financial officer Simon Hanna said in the news release.

Fibra Macquarie Mexico is a Mexico City-based real estate investment trust targeting industrial, retail and office real estate opportunities.

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