Hammerson agrees £350m RCF with 14-bank syndicate

Hammerson has agreed a £350 million (€418 million) revolving credit facility with a syndicate of 14 international banks, including several Asian lenders, in a bid to reduce its cost of debt.

Hammerson has agreed a £350 million (€418 million) revolving credit facility with a syndicate of 14 international banks, including several Asian lenders, in a bid to reduce its cost of debt.

The listed real estate developer has signed a five-year RCF which can be extended to seven years if required.

Japanese bank MUFG acted as coordinator of the loan facility and Deutsche Bank was appointed as the facility’s agent.

BNP Paribas, First Commercial Bank, ICBC, JP Morgan, Royal Bank of Scotland and Wells Fargo Bank were appointed as mandated lead arrangers and book-runners.

Commitments were also provided by Agricultural Bank of China, Bank of China, Bank of Taiwan, Chang Hwa Commercial Bank Limited London Branch, CIC and Hua Nan Commercial Bank.

Timon Drakesmith

The new facility, which has an initial margin of 90 basis points, will refinance an existing £175 million RCF that is due to mature in April next year. The existing facility, which featured a margin of 150 basis points, will be cancelled resulting in a net increase of £185 million of available bank facilities and increasing total bank facilities to £1.2 billion.

The terms of the new loan are the same as Hammerson’s two other RCFs, a £415 million facility signed in April 2015 and a £420 million deal signed in April 2016.

“This new credit facility is the latest milestone in our journey to reduce Hammerson’s cost of debt by refinancing in an attractive funding environment,” said Timon Drakesmith, chief financial officer at Hammerson.

 

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