Bullring owner Hammerson cuts cost of debt through new refinancing

22nd Apr 2015 08:04

Property group Hammerson has further cut the cost of its debt after inking a new £415m revolving credit facility (RCF) with a syndicate of nine banks at a lower interest rate.The retail-focused real estate company, which owns the Bullring and Brent Cross shopping centres, signed an unsecured RCF at an initial margin of 80 basis points for general corporate purposes. It has a maturity of five years but may be extended to seven.The new loan replaces an existing £505m RCF which would have matured in April 2016 and carried an initial margin of 150 basis points. This will be cancelled with £90m undrawn."This reduction in quantum of facilities reduces future refinancing risk and commitment fees. Overall financing costs are further reduced by the lower margin," Hammerson explained.The group now has £2.8bn under its belt in total committed financing.Chief financial officer Timon Drakesmith said the transaction represented "another milestone on our journey to further reduce Hammerson's cost of debt".He said: "Credit markets are strong and we appreciate the support of our bank group in arranging this attractive loan facility. We have structured the refinancing to achieve a blend of optimal liquidity, lower running cost and longer maturity."The stock was up 0.7% at 683.5p by 08:19.