Hammerson has announced that it has signed an agreement with eleven institutional investors, from both the US and the UK, for the placement of £400m of private placement notes with maturities at 7, 9, 11 and 14 years.
The fixed rate notes are denominated in Euro (EUR 177m), British Pound Sterling (£50m) and US Dollar ($232m) with the US Dollar portion being swapped to fixed Euro (EUR 210m). The notes were priced on 13 October 2016 with a weighted average coupon at a fixed rate of 1.70%, equivalent nominal value of $488m (£400m) and weighted average maturity of 9 years.
The company says that the placement, which will be funded in January 2017, is to be used repay short term bank facilities used for recent acquisitions in Dublin and Birmingham. The placement will extend the weighted average debt to 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%.
Hammerson is a REIT focused on retail property in UK and France.
Hammerson raises £400m of fixed rate debt in US private placement : HMSO