Retail landlord Hammerson has secured a £1.5bn unsecured revolving credit facility which will be used to repay selected intu debt facilities after the companies complete their merger.
The three-year facility was agreed at an initial margin of 100 basis points with a syndicate of 12 relationship banks. It can only be drawn upon completion of the proposed acquisition of intu, which will create a £21bn pan-European retail and leisure portfolio.
The deal was put in jeopardy this week by French property group Klépierre’s £5bn takeover bid for Hammerson, which chairman David Tyler called “wholly inadequate and entirely opportunistic”.
Mitsubishi UFJ Financial Group has acted as coordinator for Hammerson’s new facility and HSBC Bank was appointed as the facility agent.
Bank of China Limited London Branch, Barclays Bank, BNP Paribas, Deutsche Bank, HSBC Bank, JP Morgan Securities, Lloyds Bank, Mizuho Bank Ltd, National Westminster Bank, Santander, MUFG and Wells Fargo Bank NA London Branch were the mandated lead arrangers and bookrunners.
Richard Sharp, group treasurer of Hammerson, said: “This new facility supports our acquisition of intu and is illustrative of the future refinancing opportunities in bringing intu’s secured debt structure on to Hammerson’s unsecured debt platform.
“It is further evidence of the strength of our relationships with our existing banking group and continues to demonstrate the attractiveness of Hammerson’s credit profile.”
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