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.
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.