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(Alliance News) - Hammerson PLC on Wednesday said it has obtained an amendment to covenants on its private placement notes and increased its maximum liquidity by GBP300 million.
Hammerson has its head office in London, where its shares were up 4.2% at 83.64 pence. In Johannesburg, its shares were up 4.1% at ZAR17.93.
The company negotiated an amendment of the covenants on its existing private placement notes, increasing available headroom on the unencumbered asset ratio covenant until the end of 2021.
The amendment relaxes the covenant for unencumbered assets to no less than 125% of net unsecured borrowing from no less than 150%. At the end of 2019, unencumbered assets made up 189% of net unsecured borrowing.
A condition to the amendment includes a temporary financial covenant requiring the firm to maintain 12 months' forward liquidity over GBP100 million.
In addition, Hammerson and its private placement noteholders have reached an agreement that the company will make an offer of pre-payment at par for 30% of any application proceeds from disposal or capital raisings of more than GBP50 million as part of paydown of debt.
Hammerson has drawn down another GBP300 million of its GBP1.2 billion revolving credit facilities to enhance its cash reserves. This is in addition to the GBP100 million drawn in march. Liquidity stands at GBP1.2 billion including GBP500 million of cash and GBP700 million of undrawn committed facilities.
In addition, it has obtained approval for the issuance of as much as GBP300 million under the Bank of England's Covid Corporate Financing Facility. This takes maximum liquidity to GBP1.5 billion.
As at June 29, the company has collected 73% of interim rent in the UK, 53% in France, and 72% in Ireland. It is expecting collection rates to keep improving materially in all regions as it progresses agreements with brands.
"Covid-19 has had an unprecedented impact on many businesses. Following the closure of our flagships (except for essential retail) we have supported our occupiers, particularly smaller and independent brands that are less resilient to the temporary closures. All discussions with brands regarding rent deferrals, monthly payments, and waivers have been on a case-by-case basis, taking into account the business model, risk profile and ability of the occupier to pay, alongside the support made available by the relevant governments," said Hammerson.
By Anna Farley; annafarley@alliancenews.com
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