black stone closes the refinancing of Testa, its subsidiary in Spain with more than 10,000 apartments. The North American investment fund present in Spain since the start of the real estate crisis in 2008 has closed a agreement with Testa’s creditor bank to extend the loan signed in 2018 and which expired in 2024. With this operation, Blackstone extends the liabilities of its subsidiary by three or even five years, “subject to certain conditions being met”.
At the end of 2022, Testa’s accounts show long-term debts with credit institutions for 1,670 million euros, while the The company’s total liabilities amount to 1,825 million. These are the debts that are included in the refinancing, which was closed at an interest rate referenced to Euribor plus a margin “at market conditions”, as Testa confirmed in a relevant fact to the regulator.
The origin of Testa’s debt is linked to Blackstone’s acquisition of the company from Banco Santander, BBVA, Acciona and Merlin Properties. After closing the transaction, Bank of America, Merrill Lynch, Société Générale and Banco Santander They lent 1,520 million to the subsidiary of the North American fund. They then agreed on a maturity of two years, extendable up to five years, with a final maturity in February 2024. In recent months, this credit has been in a situation of “money trap”in which the creditor bank was obligated to keep all income Testa earned from sales.
Third major refinancing from Blackstone
In 2023, in addition to Testa, Blackstone closed the refinancing of Fidere, another of its companies offering rental housing. In this case, last May, the company announced that it had reached an agreement with Crédit Agricole, BNP Paribas and CitiBank to receive a credit of 440 million euros. The size of this company is much smaller than Testa. However, its debt was also initially signed in 2018 and was due to be renegotiated between 2023 and 2024.
Before the refinancing, Fidere only had 386 million awaiting amortization. The new debt, with a maturity of between two and five years, is made up of a green syndicated loan of 426 million and an additional tranche of 25 million, of which he will only have 14 million. On this occasion, the signed interest rate was Euribor and a differential of 2.5%.
Also, in the first trimester, Blackstone refinanced Hotel Investment Partners (HIP)another of its investments in southern Europe and in the the largest owner of Hotels In Spain. In this debt operation, they participated Morgan Stanley and Credit Agricolethat they lent 680 million euros divided into two tranches, one of senior debt and the other mezzanine. Once the liability was settled, Blackstone brought Singapore’s sovereign wealth fund GIC into the capital of HIP, which acquired a 35% stake last October. It is one of the main hotel operations in Spain, with an estimated value of 1.4 billion euros.