REG - Hammerson PLC - Results of bond tap issuance and tender offer

HammersonAnnouncement

08/09/2023 13:15

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RNS Number : 9004L  Hammerson PLC  08 September 2023

 

 

Hammerson plc ("Hammerson" or the "Company")

 

8 September 2023

 

Hammerson successfully completes its £100m bond tap issuance and matching
£100m tender offer of its 2025 and 2026 bonds

 

Hammerson announces the results of its successful £100m bond tap issuance and
matching tender offer.

On 31 August 2023, Hammerson announced the issuance of a £100m increase (or
"tap") of its existing £200m 7.25% coupon bonds maturing in 2028 (the "New
Bonds"), resulting in a new outstanding notional of £300m.  On 31 August
2023, Hammerson further announced a tender offer for its £350m 3.5% coupon
bonds maturing in 2025 (the "2025 Bonds") and its £300m 6.0% coupon bonds
maturing in 2026 (the "2026 Bonds").  Earlier today, Hammerson announced
acceptance of the tenders for £11.7m of the 2025 Bonds and £88.4m of the
2026 Bonds.

The New Bonds were issued on 6 September and priced at a yield of 9.1%.
Hammerson achieved purchase yields on the tendered and shorter dated 2025
Bonds and 2026 Bonds of 7.7% and 8.1% respectively.

The effect of the combined transactions is to extend £100m of Hammerson's
maturities in 2025 and 2026 to 2028 with an annualised net interest cost of
£3m(1) to adjusted earnings in FY 2024.

Note 1

The net annualised cash cost is £2m excluding the IFRS requirement to
capitalise and amortise the new issue discount over the life of the New
Bonds.

 

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

 

Enquiries

Hammerson Investor Contacts

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

T: +44 (0) 20 7887 1053         E: josh.warren@hammerson.com
(mailto:josh.warren@hammerson.com)

 

Hammerson Media Contacts

Natalie Gunson, Group Communications Director, Hammerson

T: +44 (0) 20 7887 4672                     E:
natalie.gunson@hammerson.com (mailto:natalie.gunson@hammerson.com)

 

MHP for Hammerson

Ollie Hoare and Charles Hirst

T: +44 (0)20 3128 8100          E: Hammerson@mhpgroup.com
(mailto:Hammerson@mhpgroup.com)

 

Notes to editors

Hammerson has ratings of BBB (issuer default rating) from Fitch Ratings
Limited ("Fitch") and Baa3 (long term debt) from Moody's Investors Services
Limited ("Moody's"). The new bonds were assigned a BBB+ rating by Fitch and a
Baa3 rating by Moody's.  Fitch and Moody's have both confirmed the combined
transactions as credit positive noting that they reduce refinancing risk and
demonstrate continued access to the debt markets.

Morgan Stanley are acting as Sole Lead Manager on the issuance of the new
bonds.  Lloyds Bank Corporate Markets and Mizuho are acting as dealer
managers on the tender offer referred to herein.

About Hammerson

Hammerson is a cities business. An owner, operator and developer of prime
urban real estate, with a portfolio value of £4.7billion (as at 30 June
2023), in some of the fastest growing cities in the UK, Ireland and France.

Our portfolio and adjacent lands leverage our experience and capabilities to
create and manage exceptional city centre destinations with the opportunity to
drive value and reshape entire neighbourhoods.

Our assets are high profile and play an important role in our communities,
welcoming c. 175 million visitors each year and supporting 20,000+ jobs though
our retail, dining and social occupiers.

These destinations include Bullring in Birmingham, The Oracle in Reading,
Dundrum Estate, Dublin and Terraces du Port in Marseille. We also hold
investments in Value Retail, best-in-class villages such as Bicester Village,
Oxfordshire.

Hammerson also holds 80 acres of attractive pre-development and strategic
land. This includes complementary adjacent land, creating optionality to
enhance both the scale and diversity of the existing estate, and stand-alone
land opportunities. These include Martineau Galleries in Birmingham and
Bishopsgate Goodsyard, Shoreditch.

www.hammerson.com

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