Holland & Knight acts for Mexican REIT Fibra HD on bond issuance
Holland & Knight has represented Mexican real estate investment trust (REIT) Fibra HD on its successful fourth and fifth issuance of long-term bonds under its pre-authorized program (FIBRAHD 19U and FIBRAHD 19, respectively), totaling 2.2 billion pesos ($112.5 million).
Actinver Casa de Bolsa, Grupo Financiero Actinver, acted as underwriter of the transactions. The bonds received an investment grade credit rating of ‘HR AA’ by HR Ratings de Mexico, and ‘AA/M’ by Verum.
The funds were applied toward the early payment of the company´s FIBRAHD 17U and FIBRAHD 17 bonds.
As a result of this refinancing, Fibra HD is again in full compliance with the regulatory debt service coverage ratio (DSCR).
This is the first time a Mexican REIT has executed a plan to remediate a Regulatory DSCR breach, which after the prepayment of its FIBRAHD 17 and FIBRAHD 17U bonds established a new level of 1.69, the law firm said.
“This is the first time the regulation to measure and limit Mexican REIT debt was enforced,” according to Holland & Knight partner Guillermo Uribe Lara, who led the firm’s representation. “After going through this first test, we believe that it would be prudent to amend the regulation in order to avoid some minor interpretation problems.”
The Holland & Knight team also included senior counsel Adrián Gay Lasa and associates Jorge E. Gonzalez Carlini, Santiago Soldevilla Gutiérrez and Mirna L. Ordaz Aviles.
Fibra HD acquires, owns and operates real estate properties, including industrial, commercial, office and university properties.
