TERRAFINA TAPS US$150 MILLION FROM ITS REVOLVING CREDIT FACILITY TO STRENGTHEN LIQUIDITY POSITION

The Company takes key measures to shield its operations under the COVID-19 risk scenario

MEXICO CITY, April 06, 2020 (GLOBE NEWSWIRE) -- 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, lease and management of industrial real estate properties in Mexico, announced today the drawdown of US$150 million of its revolving credit line maturing in January 2023, with an interest rate of Libor + 245 basis points and without prepayment penalty fees.

These resources will only be used as a contingency plan if needed in addition to current leasing revenues to shield Terrafina’s operations. Considering the amount of this drawdown, Terrafina remains in full compliance with its financial obligations (“covenants”) for leverage and interest coverage.

Terrafina is very well positioned to face the possible negative impacts on its operations due to the COVID-19 pandemic. The Company has a robust balance sheet and a solid base of multinational tenants, mainly engaged in manufacturing for export to the United States, whose dollar income generation provides stability to the business.

As a result of the COVID-19 outbreak, the Company has implemented and recommended key measures to its stakeholders to strengthen the long-term sustainability of its operations:

• Implemented security and health practices to protect the well-being of its collaborators based on labor and health recommendations made by the authorities.
   
• Doubled efforts to maintain an excellent service for our tenants.
   
• Suspended new development plans for expansions and built-to-suits and postponed non-essential CapEx, in order to prioritize liquidity.
   
• Finally, to support our tenants in these difficult times, we created protocols to handle situations that may arise regarding rent payments. Under these protocols, and with the support of our external advisor, PGIM Real Estate and our property managers, we will analyze the possibilities for deferring rent payments for a defined time on a case by case basis, in case our tenants require it.

Alberto Chretin, CEO of Terrafina, commented: “At Terrafina, our number one priority is to ensure the well-being of all our stakeholders, including our collaborators, tenants and suppliers as they are all crucial to maintaining our operations in the long term. By taking these steps today, we strengthen our position within the industrial real estate industry and reinforce our commitment to the export manufacturing sector. This plan also helps us to maintain sufficient flexibility and to consolidate our leadership position in the sector.”