MEXICO CITY--(BUSINESS WIRE)--FIBRA Macquarie México (FIBRA Macquarie) (BMV:FIBRAMQ) today announced that its Technical Committee has approved and established a certificate repurchase program in accordance with the terms of its trust agreement. FIBRAMQ is authorized to repurchase up to five percent of its outstanding certificates over the next twelve months.
FIBRAMQ plans to repurchase certificates from time to time in the open market. The timing, prices, and sizes of repurchases will depend upon prevailing market prices, general economic and market conditions and other considerations, including investment alternatives. In addition to this program, FIBRA Macquarie retains ample capital capacity to continue making long-term investments.
Additionally, FIBRAMQ announced that it has signed a term sheet for a new US$210 million 10-year non-amortizing, non-recourse, secured loan with a fixed interest rate of approximately 5.3 percent. The proceeds of the financing are expected to be used repay an existing US$180 million secured loan that matures in February 2018; the remaining proceeds of approximately US$30 million will be applied to partially repay the outstanding drawn revolver, resulting in an increase in undrawn revolving lines available for general corporate purposes. The new loan is expected to close by the end of the third quarter 2017. Upon completion of the financing, it is expected that approximately 93 per cent of FIBRA Macquarie’s debt would be fixed rate, with an increased weighted average tenor of 6.1 years and weighted average interest rate of 5.3 per cent per annum.
The financing is subject to the completion of loan documentation and the lender’s final internal approval.
“This certificate repurchase program demonstrates our commitment to building long-term value through net asset value and AFFO on a per certificate basis, and our confidence in both the existing value and long-term growth potential of FIBRA Macquarie,” said Juan Monroy, FIBRA Macquarie’s chief executive officer. “We will take a measured approach to executing these repurchases, as we intend to continue to retain capacity to make long-term investments, particularly pursuing our robust expansion pipeline, while seeking to reduce our leverage ratio over time. I am also pleased with the ongoing enhancements we are making to our balance sheet, particularly our ability to act on market opportunities to secure attractive financing, and the growing confidence of the lender community in FIBRA Macquarie.”
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 275 industrial properties and 17 retail/office properties, located in 24 cities across 19 Mexican states as of March 31, 2017. 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$118 billion of total assets under management as of March 31, 2017.
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 over 27 countries. Macquarie employs over 13,800 people and has assets under management of $368.5 billion (as of March 31, 2017). For more information, please visit www.macquarie.com.
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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.
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