MONTERREY, Mexico--(BUSINESS WIRE)--Deutsche Bank México, S.A., Banking Institution, Trust Division F/1616 or Fibra Inn (BMV:FINN13, ADR OTC:DFBRY) (“Fibra Inn” or “the Company”), the Mexican real estate investment trust specializing in the hotel industry serving the business traveler with international brands, today announced the successful issuance of Certificados Bursátiles Fiduciarios (“CBFs”) under the ticker symbol “FINN 15”, through the re-initiation of its local debt program.
Fibra Inn issued CBFs totaling Ps. 1 billion under its program approved for up to Ps. 5 billion. This second issuance of the program, which took place in one tranche, will pay interest every 28 days, at a variable rate of TIIE28 + 130 basis points, for a 5-year term and the principal will be paid at maturity. Similar to the first issuance, Fitch Ratings gave this a AA-(mex) local rating and HR Ratings rated it AA+ on a local scale.
The resources obtained from this issuance will be allocated towards paying Ps. 350 million of current bank debt, replacing it with longer term and lower cost debt, as well as for investments in hotels currently in the portfolio and for new hotels, with a portion going towards paying the commissions related to this issuance.
Oscar Calvillo, CEO of Fibra Inn stated: “Fibra Inn continues to consolidate its position as segment leader, always seeking strategies aligned to the market. It is important to mention that following this debt program re-initiation, the estimated leverage levels for Fibra Inn will reach 28.9% and the debt coverage ratio is expected to be nearly 5.0x, which is evidence of the Company’s healthy and responsible financial strategy.”
This transaction was successfully oversubscribed 1.3 times and was placed among debt investors, Afores, portfolio managers, insurance companies, investment funds and private banks.
About the Company
Fibra Inn is a Mexican trust formed primarily to acquire, develop and rent a broad range of hotel properties in Mexico aimed at the business traveler. The Company has signed franchise, license and brand usage agreements with international hotel brands for the operation of global brands as well as the operation of national brands. Additionally, the Company has development agreements. These hotels enjoy some of the industry’s top loyalty programs. Fibra Inn trades its Real Estate Certificates (Certificados Bursaìtiles Fiduciarios Inmobiliarios or “CBFIs”) on the Mexican Stock Exchange under the ticker symbol “FINN13”; its ADR trades on the OTC market in the U.S. under the ticker symbol “DFBRY”.
For more information, please visit our website: www.fibrainn.mx
Note on Forward-Looking Statements
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management’s current view and estimates of future economic circumstances, industry conditions, Company performance and financial results. Also, certain reclassifications have been made to make figures comparable for the periods. The words “anticipates”, “believes”, “estimates”, “expects”, “plans” and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.