Issue of Debt

RNS Number : 7585P

Hammerson PLC

22 November 2016

 

Hammerson plc

22 November 2016

Hammerson raises £400 million in US Private Placement transaction

Hammerson has signed an agreement with eleven institutional investors from both the US and the UK for the placement of £400 million of private placement notes with maturities at 7, 9, 11 and 14 years.

The fixed rate notes are denominated in Euro (EUR 177 million), British Pound Sterling (£50 million) and US Dollar ($232 million) with the US Dollar portion being swapped to fixed Euro (EUR 210 million).  The notes were priced on 13 October 2016 with a weighted average coupon at a fixed rate of 1.70%, equivalent nominal value of $488 million (£400 million) and weighted average maturity of 9 years.

The placement will fund in January 2017 and will repay short term bank facilities used for recent acquisitions in Dublin and Birmingham.  The USPP market was attractive in offering competitive pricing, deferred funding and a spread of maturities to assist with management of future refinancing risk.

The placement will extend the weighted average debt maturity by approximately 0.8 years (6 years at 30 June 2016) and will increase the proportion of the Group's fixed rate debt by approximately 10% (68% fixed as at 30 June 2016).  The Group's hedge of euro-denominated assets will remain around 80%. Barclays, RBS and Santander acted as agents on this transaction.

Timon Drakesmith, Chief Financial Officer of Hammerson, commented;

"This financing locks in long-dated funding at all-time low interest rates.  Being Hammerson's second issuance into this market, we are delighted to have built upon the relationships with debt investors from our first placement in 2013 as well as introducing six new investors.  We believe this is the largest ever Private Placement for a UK property company."

For further information contact;

Timon Drakesmith, Chief Financial Officer

Tel: [phone]

Richard Sharp, Group Treasurer

Tel: [phone]

[e-mail]

Note: the announcement above has also been released on the SENS system of the Johannesburg Stock Exchange.

ENDS

 

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