Renta 4 | According to information provided to the Stock Market Regulator, Merlin Properties has subscribed to green corporate financing with various banks. This allows it to add 660 million euros to its disposable liquidity, reaching a total of 2 billion, and means that the repayment of all its debt maturities to 2027 is assured.
The financing consists of a syndicated 5-year loan for 600 million euros with 5 lenders (BBVA, BNP Paribas, Caixabank, Crédit Agricole y Société Générale) and a bilateral 5-year loan with Banco Sabadell for 60 million euros. In addition, the company will have at its disposal the 10-year loan agreed with the EIB for 50 million euros.
The financing has been closed at an average cost of MS (Mid-Swap) + 126bps and lengthens the average life of its debt to 6.1 years from 5.2.
Valuation: This news has a positive slant which we expect will have a limited impact on the share price. Although the cost of the new financing would be above the current average financial cost (1.94% all in), Merlin is managing to lengthen the average period of its debt, while also assuring the coverage of all maturities.
We recall that, at end-September 2022, Merlin Properties had Net Financial Debt of 3.694 billion euros (LTV of 31%), 99.6% at a fixed rate and 97.9% corresponding to corporate debt (non-mortgage).
We reiterate our OVERWEIGHT stance with a T.P. of 10,30 euros/share.
