Hispania sources €340m loan to refinance debt

The Spanish REIT, recently bought by Blackstone, has signed a facility maturing in February 2020 with BNP Paribas.

Hispania, the hotel-focused Spanish real estate investment trust owned by Blackstone, has completed a refinancing loan with French bank BNP Paribas totalling €340 million.

The 1.5-year facility, which will be used to refinance the REIT’s existing debt, includes an option to extend the term by two one-year periods.

“BNP Paribas has supported Hispania on the basis of a continued success story as a leading hotel REIT with a clear strategy going forward,” a spokeswoman for the bank told Real Estate Capital, adding that BNP is a “key financial” partner of Blackstone.

In February, Hispania signed a corporate financing agreement with several Spanish and international lenders for a facility without mortgage collateral of up to €745 million. The REIT undertook €470 million from the facility, using €220 million to refinance the syndicated loan that backed the acquisition of Bay Hotels from Barcelo Group and €250 million to finance the REIT’s latest acquisitions.

The €470 million matured on 26 August, but Hispania extended the loan’s due date by six months. The new credit line signed with BNP will help Hispania to mitigate risks linked to the short-term maturity for the company’s debt, Spanish media reported.

In July, Hispania agreed to be bought by US private equity giant Blackstone for over €2 billion, following a revised offer. Blackstone, which already held a 16.6 percent stake in Hispania prior to the full takeover, plans to delist the REIT, which was launched in 2014.

The Spanish REIT, which posted a net profit of €71.9 million in H1 2018, has a portfolio including 46 hotels located in Spain’s main touristic cities; 25 office assets in Madrid and Barcelona, as well as residential units for rent.