New revolving credit facility reduces cashpot by 拢90m but slashes interest rate
Developer Hammerson has signed a new five-year revolving credit facility (RCF) that reduces the pool of funding it can access from 拢505m to 拢415m but almost halves its interest payments.
In a statement to the London Stock Exchange, the company said the new five-year facility with a syndicate of nine banks would offer debt at an initial margin of 80 basis points and replace a previous facility due to expire in April 2016 that carried an initial 150 basis point margin.
Chief financial officer Timon Drakesmith, pictured, said the new transaction represented a milestone for the business鈥� efforts to reduce its cost of debt.
鈥淐redit markets are strong and we appreciate the support of our bank group in arranging this attractive loan facility,鈥� he said.
鈥淲e have structured the refinancing to achieve a blend of optimal liquidity, lower running cost and longer maturity.鈥�
The new five-year RCF is extendable to seven years with the agreement of each of the syndicate鈥檚 banks.
Hammerson said it now had total committed financing of approximately 拢2.8bn available.
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