Hammerson signs credit facility

Hammerson has announced it has signed a £505m five-year revolving credit facility which it will use for general corporate purposes. The deal means the total medium-term committed financing available to Hammerson is now about £2.7bn.

The facility, which carries a margin of 150 basis points over Libor, was increased from £400m after an oversubscription. BNP Paribas acted as co-ordinator for the facility, alongside 11 other prominent financial institutions including Barclays Bank, Bank of America Merrill Lynch, The Bank of Tokyo-Mitsubishi UFJ and HSBC. The new facility will replace existing undrawn facilities of £670m that are due to expire 2011-2013.

Hammerson’s third existing revolving credit facility of £340m will be maintained to maturity.

Simon Melliss, chief financial officer, said: “I am delighted with the excellent response we have received from our bankers for this facility, which provides flexibility going forward.”

The news came on the day Hammerson issued its interim management statement. David Atkins, chief executive, said: “While the economic backdrop for consumers remains difficult, we are seeing the benefit of our focus on regionally dominant shopping centres and convenient retail parks, which continue to attract successful retailers.”