Senior Unsecured HoldCo financing for a pan-European logistics portfolio.
LMF was appointed to advise on Senior Unsecured HoldCo financing for a pan-European logistics investment platform with assets across several European countries. The existing portfolio consisted of mission-critical logistics properties financed by multiple senior lenders at property-company level.
The objective was to refinance an existing HoldCo facility and preserve capacity for further acquisitions without disturbing efficient asset-level senior debt. This required a financing structure capable of sitting above several local property companies and lender groups while capturing diversified portfolio cash flows.
The financing was structured at a Luxembourg holding-company level through a double-LuxCo structure. This created a common portfolio-level borrower above the underlying asset-owning companies while the existing local senior lenders retained their property-level collateral packages.
At the time of the financing work, the portfolio comprised ~300,000 sqm of logistics space across several European countries, with an aggregate property value of ~€150m. The assets were leased to established logistics, e-commerce and industrial occupiers, with a weighted average lease profile of more than six years.
The senior debt was spread across multiple lenders and secured directly at the underlying property companies. LMF therefore underwrote the Senior Unsecured HoldCo financing on the basis of portfolio cash-flow generation, rental indexation, lease duration, asset-level leverage, NAV liquidity and the ability to release or recycle capital through acquisitions and disposals.
The Senior Unsecured HoldCo facility was structured to refinance the existing portfolio-level debt and provide additional acquisition capacity, while leaving the efficient property-level senior facilities in place.
For multi-jurisdiction portfolios, HoldCo debt can provide additional capital without requiring every property-level senior loan to be refinanced. It can also create a common source of liquidity for acquisitions and portfolio strategy, provided the HoldCo lender has sufficient visibility on distributions, asset-level covenants, cash traps and permitted leakage.
LMF advised on the double-LuxCo financing structure, portfolio debt capacity, HoldCo leverage and debt-capacity parameters, lender sourcing and credit positioning. The process included analysis of the underlying senior facilities, property-level security, portfolio cash-flow generation and acquisition pipeline, as well as lender negotiations and due-diligence management.
Speak with LMF about capital structure, lender options, refinancing or growth financing requirements.