Hammerson has announced that it has signed a £360 million unsecured Revolving Credit Facility (RCF) at an initial margin of 90 basis points. The RCF is with a syndicate of fourteen international banks and has a maturity of five years which may be extended to a maximum of seven years.
Hammerson says that the new facility will refinance an existing £175 million RCF maturing in April 2018 that incurs a margin of 150 basis points. The existing facility will be cancelled resulting in a net increase of £185 million of available bank facilities and increasing total bank facilities to £1.2bn. Hammerson says that the commercial terms of the new facility are the same as Hammerson’s two other RCFs (a £415m RCF signed in April 2015 and a £420m RCF signed in April 2016) and include Hammerson’s standard unsecured financial covenants. This combination of transactions extends the weighted average maturity of debt from 5.5 years at 31 December 2016 to 6.4 years on a pro forma basis.
About Hammerson
Hammerson is a REIT focused on retail property in UK and France. It describes itself as a FTSE 100 owner, manager and developer of retail destinations in Europe. Its portfolio of retail property has a value of around £10 billion, which it says includes 23 prime shopping centres, 18 convenient retail parks and investments in 19 premium outlet villages, through its partnership with Value Retail and the VIA Outlets joint venture. Key investments reportedly include Bullring, Birmingham, Bicester Village, Oxfordshire, Dundrum Town Centre, Dublin and Les Terrasses du Port, Marseille.
Hammerson secures a five-year revolving credit facility for £360m : HMSO