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(Alliance News) - Hammerson PLC on Thursday announced the launch of a tender offer for two separate series of euro-denominated bonds, the purpose of which is to manage and refinance near term maturities and extend the average duration of the external indebtedness.
The London-based retail property investor first euro series has an outstanding nominal amount of EUR500 million, with a coupon of 2.000% and a maturity date of July 1, 2022. The second series has a nominal amount of EUR500 million, with a coupon of 1.750% and a maturity date of March 15, 2023.
The final deadline for taking part in the tender offer is set for Friday next week, with the purchase price for the tender offer to be determined on June 1.
Also on Thursday, Moody's Investors Service assigned a Baa3 rating to a new benchmark-sized sustainability euro bond which will be issued by subsidiary Hammerson Ireland Finance DAC, but gave a negative outlook.
The credit agency views the bond issuance as credit positive if successful, as it and the tender offer will tackle upcoming debt well ahead of its maturity and secure the company's access to public debt markets.
However, the negative outlook reflects the ongoing effect of pandemic on Hammerson's operating performance, as well as the improving investment markets which could pose a challenge to the company being able to dispose of assets.
Shares in Hammerson were down 0.1% at 36.37 pence on Thursday in London, while its Johannesburg shares were 0.7% lower at ZAR7.22.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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