22nd Apr 2015 06:20
LONDON (Alliance News) - Hammerson PLC Wednesday said it had signed a GBP415 million unsecured revolving credit facility with a syndicate of nine banks, refinancing an existing GBP505 million facility that was set to mature in April 2016, meaning it will cut its undrawn facilities and reduce borrowing costs.
The facility was syndicated at an initial margin of 80 basis points and has a five-year maturity that can be extended to seven years. The old facility, which is being cancelled, carried an initial margin of 150 basis points.
The commercial property company said the refinancing means its undrawn facilities will be cut by GBP90 million, although it will still have about GBP2.8 billion in total committed financing available to it.
BNP Paribas acted as coordinator for the new facility. BNP Paribas, Bank of Tokyo-Mitsubishi UFJ, Barclays, HSBC, JP Morgan, Santander and Royal Bank of Scotland were appointed mandated lead arrangers and bookrunners. Commitments were also provided by Deutsche Bank and Chang Hwa Commercial Bank.
"This new transaction is another milestone on our journey to further reduce Hammerson's cost of debt. Credit markets are strong and we appreciate the support of our bank group in arranging this attractive loan facility. We have structured the refinancing to achieve a blend of optimal liquidity, lower running cost and longer maturity," Hammerson Chief Financial Officer Timon Drakesmith said.
By Steve McGrath; [email protected]; @stevemcgrath1
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