Hammerson PLC Issue of Debt (7585P)
November 22 2016 - 1:00AM
UK Regulatory
TIDMHMSO
RNS Number : 7585P
Hammerson PLC
22 November 2016
Hammerson plc
22 November 2016
Hammerson raises GBP400 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 GBP400
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 (GBP50 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 (GBP400 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: +44 (0) 20 7887 1000
Richard Sharp, Group Treasurer
Tel: +44 (0) 20 7887 1119
richard.sharp@hammerson.com
Note: the announcement above has also been released on the SENS
system of the Johannesburg Stock Exchange.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
IODBRBDBSSDBGLB
(END) Dow Jones Newswires
November 22, 2016 02:00 ET (07:00 GMT)
Hammerson (LSE:HMSO)
Historical Stock Chart
From Apr 2024 to May 2024
Hammerson (LSE:HMSO)
Historical Stock Chart
From May 2023 to May 2024