Terrafina Successfully Concludes Refinancing of US$150 Million in Secured Credit Loans

MEXICO CITY--()--Terrafina® (“TERRA”) (BMV:TERRA13), a leading Mexican industrial real estate investment trust (“FIBRA”), externally advised by PGIM Real Estate and dedicated to the acquisition, development, leasing and management of industrial real estate properties in Mexico, announced today the conclusion of Terrafina’s US$150 million refinancing, which is in line with the Company’s secured credit loan refinancing strategy that was initiated in mid-2016. This new loan has a fixed rate of 4.75% and a 10-year maturity.

Via this transaction, the Company will have access to improved financing conditions in a challenging macroeconomic environment, which demonstrates the confidence that exists in Terrafina and in the industrial real estate sector in Mexico.

As a result of this new financing, Terrafina’s debt profile will be more flexible and will benefit from lowering the average cost of debt, by obtaining a 4.75% fixed interest rate for the new loan compared to LIBOR plus 3.75% and 5.09% fixed rate for the previously-held secured credit loans. Additionally, Terrafina will improve the weighted average to maturity to 6.7 years from 4.4 years at September 30, 2016, via the addition of a 10-year loan.

“We are very pleased to announce this new loan with which we conclude the refinancing strategy that was initiated in 2016, and which will allow us to improve Terrafina’s credit conditions. The immediate benefits will be a lower average cost of debt, expanding the maturity profile and increasing our exposure to non-amortizing loans.

“We also believe that the strength of our model enabled us to obtain the best financing conditions with these characteristics, and underscores the trust our lenders have in our operation and growth strategy,” stated Alberto Chretin, Chief Executive Officer.

About Terrafina

Terrafina (BMV:TERRA13) is a Mexican real estate investment trust formed primarily to acquire, develop, lease and manage industrial real estate properties in Mexico. Terrafina’s portfolio consists of attractive, strategically located warehouses and other light manufacturing properties throughout the Central, Bajio and Northern regions of Mexico. It is internally managed by highly qualified industry specialists, and externally advised by PGIM Real Estate.

Terrafina owns 271 real estate properties, including 260 developed industrial facilities with a collective GLA of approximately 36.4 million square feet and 11 land reserve parcels, designed to preserve the organic growth capability of the portfolio.

Terrafina’s objective is to provide attractive risk-adjusted returns for the holders of its certificates through stable distributions and capital appreciations. Terrafina aims to achieve this objective through a successful performance of its industrial real estate and complementary properties, strategic acquisitions, access to a high level of institutional support, and to its management and corporate governance structure. For more information, please visit www.terrafina.mx.

PGIM Real Estate

PGIM Real Estate is the real estate investment business of PGIM Inc., the global investment management businesses of Prudential Financial, Inc. (NYSE:PRU). Redefining the real estate investing landscape since 1970, PGIM Real Estate has professionals in 18 cities in the Americas, Europe and Asia Pacific with deep local knowledge and expertise, and gross assets under management of $66.0 billion ($47.6 billion net) as of December 31, 2016. PGIM Real Estate’s tenured team offers to its global client base a broad range of real estate investment vehicles that span the risk-return spectrum across core, core plus, value-add, debt, securities, and specialized investment strategies. For more information, visit www.pgimrealestate.com.

About Prudential Financial, Inc.

Prudential Financial, Inc. (NYSE:PRU), a financial services leader with more than $1 trillion of assets under management as of December 31, 2016, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit www.news.prudential.com.

Forward Looking Statements

This document may include forward-looking statements that may imply risks and uncertainties. Terms such as "estimate," "project," "plan," "believe," "expect," "anticipate," "intend," and other similar expressions could be construed as previsions or estimates. Terrafina warns readers that declarations and estimates mentioned in this document, or realized by Terrafina’s management imply risks and uncertainties that could change in function of various factors that are out of Terrafina’s control. Future expectations reflect Terrafina’s judgment at the date of this document. Terrafina reserves the right or obligation to update the information contained in this document or derived from this document. Past or present performance is not an indicator to anticipate future performance.

Contacts

in Mexico City:
Terrafina
Francisco Martinez, +52 (55) 5279-8107
Investor Relations Officer
francisco.martinez@terrafina.mx
or
in New York:
i-advize Corporate Communications, Inc.
Maria Barona, +1-212-406-3691
mbarona@i-advize.com

Contacts

in Mexico City:
Terrafina
Francisco Martinez, +52 (55) 5279-8107
Investor Relations Officer
francisco.martinez@terrafina.mx
or
in New York:
i-advize Corporate Communications, Inc.
Maria Barona, +1-212-406-3691
mbarona@i-advize.com