Merlin Secures €3.75bn Syndicated Financing to Expand Data Centre Portfolio

✦ Meridian Analysis

Merlin Properties has signed a €3.75 billion syndicated financing agreement that will run to 30 April 2032. The facility is split into two tranches: a €725 million term‑loan disbursement scheduled for 3 November 2026 to refinance a 2028 syndicated loan, and a €1.525 billion tranche available until 30 April 2027 to retire a €500 million bond due 3 July 2027 and to fund future needs, chiefly the rollout of the company’s data‑centre programme. The syndicate, composed of national and international banks, will provide the debt at a margin of 100 basis points over Euribor, extending Merlin’s average debt maturity from 3.7 to 5.3 years and keeping leverage at roughly 25 % of EBITDA. Merlin, as the issuer, will use the proceeds to repay earlier borrowings, including an €800 million bond maturing in November 2026, and to support the €4.47 billion investment plan for data‑centre expansion that will be underpinned by further equity raises. Merlin plans to pursue a €2.25 billion equity contribution for phase 3 of its data‑centre build‑out, complementing the €767 million capital increase closed in March. Deal professionals will be watching for the identities of the participating banks, any covenant package attached to the facility, and the timetable for the upcoming €1.5 billion equity issuances. Neither the exact pricing beyond the disclosed margin nor the detailed use‑of‑proceeds allocation beyond the broad data‑centre programme has been disclosed.

The Meridian Weekly