Terrafina Replaces Secured Revolving Credit with Unsecured Revolving Facility

MEXICO CITY--()--Terrafina® (”TERRA”)(BMV:TERRA13), a leading Mexican industrial real estate investment trust (“FIBRA”), externally advised by Prudential Real Estate Investors and dedicated to the acquisition, development, lease and management of industrial real estate properties in Mexico, announced today the replacement of its secured revolving credit with a new US$375 million unsecured revolving credit facility. With this transaction, Terrafina broadens and diversifies its funding sources, structuring a syndicated loan with seven international banks, of which three are new lenders.

This new financing represents a 110 basis-point interest rate decrease compared with the previous facility, generating important savings for Terrafina. The credit facility is subject to an interest rate of LIBOR plus 200 basis points to LIBOR plus 315 basis points, which will be adjusted according to leverage levels. Moreover, the credit facility is scheduled to mature on August 24, 2018 and has the option to be extended for an additional year. The credit facility may also be increased to US$475 million.

“We are pleased to have reached this key objective, which marks the first step towards converting the capital structure from secured to unsecured. This affords us additional flexibility as well as access to more competitive financing sources. Going forward, Terrafina’s priority will remain focused on obtaining the optimal financing conditions in order to benefit our investors,” stated Angel Bernal, Terrafina’s Chief Financial Officer.

About Terrafina

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 PREI.

Terrafina owns 208 real estate properties, including 196 developed industrial facilities with a collective GLA of approximately 28.2 million square feet and 9 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 to its management and corporate governance structure. For more information, please visit www.terrafina.mx

About Prudential Real Estate Investors

Prudential Real Estate Investors is the global real estate investment business of Prudential Financial, Inc. (NYSE: PRU), and operates as Pramerica Real Estate Investors in markets outside of the Americas, Korea and Japan. Redefining the real estate investing landscape since 1970, PREI has professionals in 19 cities in the Americas, Europe and Asia Pacific with deep local knowledge and expertise, and gross assets under management of $61.5 billion ($45.7 billion net) as of June 30, 2015. PREI’s tenured team offers to its global client base a broad range of real estate investment vehicles that span the risk-return spectrum across core, core plus, value-add, debt, securities, and specialized investment strategies. For more information, visit www.prei.com

About Prudential Financial, Inc.

Prudential Financial, Inc. (NYSE:PRU), a financial services leader with more than $1.2 trillion of assets under management as of June 30, 2015, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit www.news.prudential.com

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.


Mexico City:
Francisco Martinez, +52 (55) 5279-8107
Investor Relations Officer
Angel Bernal, +52 (55) 5279-8109
Chief Financial Officer
New York:
i-advize Corporate Communications, Inc.
Maria Barona, +1 212-406-3691

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