22nd Apr 2016 06:43
LONDON (Alliance News) - Property developer Hammerson PLC on Friday said it has signed a GBP420.0 million revolving credit facility with a syndicate of eight banks, refinancing a GBP150.0 million facility that was set to mature in April 2017 and increasing its liquidity.
Hammerson said the new facility was syndicated at an initial margin of 90 basis points and will have a maturity of five years that can be extended to seven years. The older facility, which is being cancelled, carried an initial margin of 150 basis points. The statement didn't specify the reference point for the two margins.
The property developer said this cancellation of the old facility will result in a net increase of GBP270.0 million of undrawn facilities. The increase in liquidity will be used partially to refinance the EUR1.50 billion revolving credit facility used to recent investments in Ireland and Birmingham.
Hammerson said that, following the signing of the new facility, the total committed financing available to it will be around GBP4.40 billion. The terms of the new facility are the same as the GBP415.0 million revolving credit facility signed in April, 2015, it added.
Lloyds Bank PLC acted as coordinator for the facility and HSBC Bank PLC was appointed as facility agent. Bank of China Ltd London Branch, China Construction Bank Corp London Branch, Lloyds Bank PLC, Mizuho Bank Ltd and Wells Fargo Bank International were appointed mandated lead arrangers and bookrunners. Commitments were also provided by Barclays Bank PLC, Credit Industriel et Commercial and HSBC Bank PLC.
"It is encouraging that the revolving credit facility is on the same attractive terms that we set in April 2015 and four new major international banks have joined our relationship group. We believe this bank facility is the largest arranged by a UK property company so far this year," said Hammerson Chief Financial Officer Timon Drakesmith.
By Hannah Boland; [email protected]; @Hannaheboland
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