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.”
Investor Relations Officer
Tel: +52 (55) 5279-8107
Ana Maria Ybarra
Tel: +52 (55) 3660-4037
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 300 real estate properties, including 289 developed industrial facilities with a collective GLA of approximately 42.3 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 an effective management and corporate governance structure. For more information, please visit www.terrafina.mx
About PGIM Real Estate
As one of the largest real estate managers in the world with $179.2 billion in gross assets under management and administration1, PGIM Real Estate strives to deliver exceptional outcomes for investors and borrowers through a range of real estate equity and debt solutions across the risk-return spectrum. PGIM Real Estate is a business of PGIM, the $1.3 trillion global asset management business of Prudential Financial, Inc. (NYSE: PRU).
PGIM Real Estate’s rigorous risk management, seamless execution, and extensive industry insights are backed by a 50-year legacy of investing in commercial real estate, a 140-year history of real estate financing 2, and the deep local expertise of professionals in 31 cities globally. Through its investment, financing, asset management, and talent management approach, PGIM Real Estate engages in practices that ignite positive environmental and social impact, while pursuing activities that strengthen communities around the world. For more information visit www.pgimrealestate.com.
1As of December 31, 2019. Includes US$37.1 billion in AUA.
2Includes legacy lending through PGIM’s parent company, PFI.
About PGIM and Prudential Financial, Inc.
PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU), ranks among the top 10 largest asset managers in the world1 with more than $1.3 trillion in assets under management as of Dec. 31, 2019. With offices in 16 countries, PGIM’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including public fixed income, private fixed income, fundamental equity, quantitative equity, real estate and alternatives. For more information about PGIM, visit pgim.com.
Prudential’s additional businesses offer a variety of products and services, including life insurance, annuities and retirement-related services. For more information about Prudential, please visit news.prudential.com.
Prudential Financial, Inc. of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom.
1As ranked in Pensions & Investments’ Top Money Managers list, 27 May 2019; based on PFI total worldwide institutional assets under management as of 31 Dec. 2018. Assets under management (AUM) are based on company estimates and are subject to change.
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.