29th Nov 2013 08:24
LONDON (Alliance News) - Retail property developer Hammerson PLC Friday said it has signed an agreement with nine unnamed US institutions for the placement of USD443 million of 7-, 10- and 12-year notes, which will fund in two tranches in 2014.
Hammerson which owns Brent Cross shopping centre in Barnet, London said the fixed-rate notes are denominated in dollars, pounds and euro.
The resultant weighted-average coupon is a fixed rate of 3.6%, with a weighted average maturity of nine years and an equivalent nominal value of GBP277 million, it said.
Hammerson, which also owns the Bullring shopping mall in Birmingham, will use to funds to partly refinance upcoming bond maturities, including its 2015 EUR480 million Eurobond which has a coupon of 4.9%.
"By final drawdown in June 2014, the placement will repay existing floating rate debt and increase the proportion of the Group?s fixed rate debt by approximately 13%, 72% fixed at September 30, 2013," the FTSE 100 company said.
Hammerson said the financing also will extend its weighted average debt maturity by approximately 0.4 of a year.
Hammerson shares were trading up 1.50 pence at 513.50p after the open Friday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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