Hammerson has signed a five-year, £360m revolving credit facility with a syndicate of 14 international banks.
The loan, which has an initial margin of 90bps, will refinance an existing £175m facility with a margin of 150bps – reflecting a discount of 60bps.
It follows two other deals Hammerson recently completed in an effort to cut its costs and extend its debt maturity. It issued a £400m private placement in January and earlier this month it extended its existing £415m and £420m revolving credit facilities by one year.
As a result, the weighted average maturity of debt rose from 5.5 years at the end of 2016 to 6.4 years on a pro forma basis.
Timon Drakesmith, chief financial officer at Hammerson, said: “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.
“I am particularly delighted to welcome five new banks into our relationship group and appreciate the support from major institutions from Asia, US and Europe.”
Japanese bank MUFG acted as the co-ordinator for the facility and Deutsche Bank was the facility agent. BNP Paribas, First Commercial Bank, ICBC, JP Morgan, RBS and Wells Fargo were mandated lead arrangers and bookrunners.
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