Hammerson buys €219.95 million bonds in offer, pricing set at 107.355

By Susanna Moon

Chicago, April 26 - Hammerson plc said investors tendered a total of €299.95 million of its €700 million of outstanding 4.875% bonds due 2015 in the modified Dutch auction tender offer that expired at 11 a.m. ET on April 25.

Holders tendered €243.1 million nominal amount of bonds under the non-competitive tender instructions and €56.75 million nominal amount of bonds under the competitive tender instructions, according to a company press release.

The company said it set the acceptance amount at €219.95 million and the purchase spread at the maximum spread of 125 basis points.

Hammerson said it will accept for purchase all bonds tendered under the non-competitive tender instructions, subject to a scaling factor of 92.3%, and will not accept any bonds tendered under the competitive tender instructions.

The company had offered to purchase up to €200 million of its notes under the offer, which was announced on April 19.

The cash purchase price for the notes will be 107.355. The price was set using the 1.156% interpolated mid-swap rate plus 125 bps, resulting in a purchase yield of 2.406%. Pricing was set at 7 a.m. ET on April 26.

The company will also pay accrued interest.

Following settlement on May 2, €480.05 million nominal amount of the bonds will remain outstanding.

The company previously said that the purpose of the offer is to use excess liquidity to manage near-term debt maturities and achieve a lower running cost of debt.

BNP Paribas (44 20 7595 8668 or liability.management@bnpparibas.com), HSBC Bank plc (44 20 7992 6237 or liability.management@hsbcib.com) and Royal Bank of Scotland plc (44 20 7085 5991 or 44 20 7085 5991 or liabilitymanagement@rbs.com) are the dealer managers.

Lucid Issuer Services Ltd. is the tender agent (44 20 7704 0880 or hammerson@lucid-is.com).

Hammerson is a real estate investment trust based in London.

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