Hammerson Secures €350 Million Bond, Boosts Credit Facilities Amid Debt Refinancing

Hammerson PLC (HMSO) has just priced a new €350 million bond with a five-year maturity bearing an annual coupon of 3.875%. This issuance came with strong demand, reportedly being over five times oversubscribed at its peak.

The new bonds are set to be issued on June 8, pending legal formalities and the usual closing conditions. This move is effectively part of Hammerson's strategy to replace its €700 million sustainability-linked bonds due in June 2027, which carried a 1.75% coupon.

Following this transaction, the weighted average maturity of Hammerson's total debt portfolio now stands at nearly 4.7 years, signaling an extension in the company's debt schedule. The new issuance falls under Hammerson's EMTN program, initially established last year and updated recently in April.

Credit ratings agencies are estimating an A- rating from Fitch Ratings and a Baa2 rating from Moody's for these bonds, aligning with the company's current issuer default rating of BBB+ from Fitch and a Baa2 rating from Moody's, accompanied by a stable outlook.

In parallel with the bond issuance, Hammerson has been busy upgrading its credit facilities. Earlier this year, it refinanced its £463 million revolving credit facility with existing lenders on unchanged terms. This committed and undrawn facility is now set to mature in April 2029 and includes two one-year extension options.

Additionally, the company exercised options to extend two more committed revolving credit facilities collectively worth £150 million, pushing their maturities out by another year to April 2029. Combined, these changes have boosted Hammerson's total committed and undrawn credit lines to £613 million.

Despite these financing maneuvers, the firm has kept its full-year 2026 EPRA earnings forecast steady at about £120 million, indicating confidence in its operational earnings trajectory amid the refinancing activity.

This fresh capital move and facility reshuffle suggest Hammerson is focused on locking in favorable financing terms and ensuring liquidity over the medium term. It remains to be seen how the new bond's pricing and facility extensions will resonate in the credit markets and among stakeholders looking at the retail property sector's outlook.