Hammerson is rejigging its finances with a new Canadian bond issue. Part of the proceeds from the C$100m of paper will be used to pay back some of the existing C$175m rolling commercial paper programme.
After selling properties in Buffalo at the end of last year, Hammerson’s existing Canadian portfolio is worth about £370m. It includes the Square One and Westmount shopping centres, and modern office buildings in Calgary and the greater Toronto area.
The new bonds mature in 2006, extending the average maturity of the Canadian debt: an existing C$125m bond issue is due to expire in 2002. The longer-term debt carries a coupon of 8.1% and has been given an “A” grade by the Canadian Bond Rating Service and Dominion Bond Rating Service.
CIBC Wood Gundy Securities and Goldman Sachs have underwritten the issue. The syndicate also includes RBC Dominion Securities and TD Securities.
