REG - Hammerson PLC - Hammerson Completes Refinancing Transactions

HammersonAnnouncement

09/10/2024 07:00

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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 £3.6m(1) 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 years(3) to 5.2
years

·    The refinancing is largely leverage neutral; pro forma(4) 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   +44 (0)20 7887 1053
 Relations

 MHP for Hammerson Media

 Oliver Hughes                                                                   +44 (0)7885 224 532

 Ollie Hoare                                                                     +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.

 

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