MONTERREY, Mexico, Jan. 18, 2018 (GLOBE NEWSWIRE) -- Deutsche Bank Mexico, S.A., Banking institution, Trust Division F/1616 or Fibra Inn (BMV:FINN13) (ADR OTC:DFBRY) (“Fibra Inn” or “the Company”), a Mexican real estate investment trust internally managed specializing in the hotel industry serving the business traveler, announced today that it issue new Senior Notes to refinance its current liabilities in order to improve the Company’s debt profile and convert it to a fixed interest rate. This will be conducted through two simultaneous processes:
- A Debt Tender Offer through the partial and early repurchase of FINN 15 local debt, maturing in 2021, for a total of up to Ps. 1,875.4 million; and
- A new debt issuance, FINN 18, at a 10-year fixed interest rate for up to Ps. 2 billion.
Nearly all of the proceeds will be used to partially refinance the FINN 15 local debt issuance, thereby, Fibra Inn’s overall leverage levels will not be affected. The objective is to align the Company’s debt maturity profile with Fibra Inn’s strategy for the upcoming years.
The FINN15 Debt Tender Offer will have a repurchase price of Ps. 100 per certificate (nominal value) and will take place between January 4 and 31 of 2018. The settlement date is February 2, 2018.
The new issuance of Trust Certificates (“CBF”) FINN 18 is under the debt program for up to Ps. 5.0 billion that was approved by the Mexican Banking and Securities Commission. As with previous issuances, the local debt ratings remained the same, at AA- (mex) by Fitch Ratings and AA+ by HR. This new issuance of unsecured CBFs will pay semi-annual interest, using the reference rate of the 10-year Federal Government M Bond and the principal payment will be due at maturity. The Company is entitled to prepay the full amount of the issuance at any time by paying a premium. The payment premium will be waived in the last 18 months. The book building will take place on January 31, 2018 and the issuance will take place on February 1, 2018.
Miguel Aliaga, Chief Financial Officer, stated: “Fibra Inn is committed to maintaining a financial strategy that is healthy and responsible and with this issuance the Company improves its debt profile. At the end of the third quarter of 2017, the Company had available resources totaling Ps. 651 million derived from cash, VAT reimbursements and debt. It is important to mention that after this issuance Fibra Inn’s estimated leverage will remain below 30%.”
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 Bursátiles Fiduciarios Inmobiliarios or “CBFIs”) on the Mexican Stock Exchange under the ticker symbol “FINN13”; its ADRs trade on the OTC market in the U.S. under the ticker symbol “DFBRY”.
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.
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