HAMMERSON PLC - Hammerson completes refinancing transactions to underpin growth strategy

Hammerson completes refinancing transactions to underpin growth strategy

Hammerson plc
(Incorporated in England and Wales)
(Company number 360632)
LSE and Euronext Dublin share code: HMSO JSE share code: HMN
ISIN: GB00BRJQ8J25
("Hammerson" or the "Company")

Hammerson completes refinancing transactions to underpin growth strategy

9 October 2024

Hammerson plc

("Hammerson" or the "Company/Group")

Following the successful issuance of its 12-year £400m bond, Hammerson sets out the final
outcome of the new issuance and accompanying tender of the Company's outstanding
bonds maturing in 2026 and 2028:

-  12-year £400m bond pricing confirmed on 3 October at a coupon of 5.875% 
   representing a spread of 183 basis points over the reference gilt rate
-  Strong demand led to peak order book in excess of £2.6bn (over 7x subscribed)
-  The repurchase of a total of £411.6m bonds, comprising £168.4m of 6% 2026s and
   £243.2m of 7.25% 2028s
-  An annualised net interest benefit to Hammerson of £3.6m(1) per year (approximately
   £0.8m for the financial year ending 2024)
-  This reduces weighted average gross interest from 3.8%(2) to 3.6% and extends
   Hammerson's weighted average debt maturity from 2.9 years(3) to 5.2 years
-  The refinancing is largely leverage neutral; pro forma(4) LTV at 30 June 2024 is 25.5% 
   and net debt:EBITDA is 5.4x

Himanshu Raja, CFO of Hammerson plc, commented:

"The combined effect of our new £400m 5.875% bond maturing in 2036 and the tender of
our existing short-dated sterling maturities reduces our ongoing interest costs and extends
our weighted average debt maturity. The strong demand and competitive pricing are a clear
recognition from investors of the strength of our portfolio, the robust balance sheet and the
opportunity ahead of us."


1 Annualised interest benefit arises due to the weighted average interest cost on the bonds tendered (6% on 2026s and 7.87% on 2028s) being 7.1% and
  higher than the 5.875% coupon on the new issue, offset by the impact of new issue discounts and the reduction to interest receivable due to net cash
  outflows.
2 Weighted average gross interest rate at 30 June 2024 of 3.4% and pro forma for the refinancing of Dundrum in August 2024 of 3.8%.
3 Weighted average debt maturity at 30 June 2024 of 2.2 years and pro forma for the refinancing of Dundrum in August 2024 of 2.9 years.
4 Pro forma for the tender and new issuance financing transactions and the disposal of the Group's interest in Value Retail generating net proceeds of £583m.
  Pro forma at 30 June 2024 reflecting only the disposal of the Group's interest in Value Retail; LTV was 24.7% and net debt:EBITDA was 5.3x.


Hammerson plc

Investor Contact

Josh Warren, Hammerson, Director of Strategy, Commercial                                              +44 (0)20 7887 1053
Finance and Investor Relations


MHP for Hammerson Media

Oliver Hughes                                                                                         +44 (0)7885 224 532

Ollie Hoare                                                                                           +44 (0)7817 458 804


Hammerson has its primary listing on the London Stock Exchange and secondary inward
listings on the Johannesburg Stock Exchange and Euronext Dublin.

Sponsor: Investec Bank Limited

Date: 09-10-2024 08:00:00
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