HMSO.L

Hammerson Plc
Hammerson PLC - Hammerson Completes Refinancing Transactions
9th October 2024, 06:00
TwitterFacebookLinkedIn
To continue viewing RNS, please confirm that you are a Private Investor*

* A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:

  1. Obtains access to the information in a personal capacity;
  2. Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
  3. Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
  4. Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
  5. Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
  6. Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
RNS Number : 4219H
Hammerson PLC
09 October 2024
 

9 October 2024

Hammerson plc

("Hammerson" or the "Company/Group")

Hammerson completes refinancing transactions to underpin growth strategy

Following the successful issuance of its 12-year £400m bond, Hammerson sets out the final outcome of the new issuance and accompanying tender of the Company's outstanding bonds maturing in 2026 and 2028:

·    12-year £400m bond pricing confirmed on 3 October at a coupon of 5.875% representing a spread of 183 basis points over the reference gilt rate

·    Strong demand led to peak order book in excess of £2.6bn (over 7x subscribed)

·    The repurchase of a total of £411.6m bonds, comprising £168.4m of 6% 2026s and £243.2m of 7.25% 2028s

·    An annualised net interest benefit to Hammerson of £3.6m1 per year (approximately £0.8m for the financial year ending 2024)

·    This reduces weighted average gross interest from 3.8%2 to 3.6% and extends Hammerson's weighted average debt maturity from 2.9 years3 to 5.2 years

·    The refinancing is largely leverage neutral; pro forma4 LTV at 30 June 2024 is 25.5% and net debt:EBITDA is 5.4x

 

Himanshu Raja, CFO of Hammerson plc, commented:

"The combined effect of our new £400m 5.875% bond maturing in 2036 and the tender of our existing short-dated sterling maturities reduces our ongoing interest costs and extends our weighted average debt maturity. The strong demand and competitive pricing are a clear recognition from investors of the strength of our portfolio, the robust balance sheet and the opportunity ahead of us."

 

1              Annualised interest benefit arises due to the weighted average interest cost on the bonds tendered (6% on 2026s and 7.87% on 2028s) being 7.1% and higher than the 5.875% coupon on the new issue, offset by the impact of new issue discounts and the reduction to interest receivable due to net cash outflows.

2              Weighted average gross interest rate at 30 June 2024 of 3.4% and pro forma for the refinancing of Dundrum in August 2024 of 3.8%.

3              Weighted average debt maturity at 30 June 2024 of 2.2 years and pro forma for the refinancing of Dundrum in August 2024 of 2.9 years. 

4              Pro forma for the tender and new issuance financing transactions and the disposal of the Group's interest in Value Retail generating net proceeds of £583m. Pro forma at 30 June 2024 reflecting only the disposal of the Group's interest in Value Retail; LTV was 24.7% and net debt:EBITDA was 5.3x.

 

ENDS

Hammerson plc

Investor Contact

Josh Warren, Hammerson, Director of Strategy, Commercial Finance and Investor Relations

 

 

 

+44 (0)20 7887 1053

MHP for Hammerson Media

Oliver Hughes

Ollie Hoare

 

+44 (0)7885 224 532

+44 (0)7817 458 804

 

 

The announcement above has also been released on the SENS system of the Johannesburg Stock Exchange and on Euronext Dublin.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
MSCKZMGGKRNGDZM]]>
TwitterFacebookLinkedIn