Hammerson signs £1.5bn credit facility to support Intu deal

A day after it emerged that it had recently rejected a £5bn offer from French shopping centre operator Klepierre, Hammerson said it has signed a £1.5bn revolving credit facility to support its acquisition of Intu Properties.

The facility, which is at an initial margin of 100 basis points with a syndicate of 12 of its relationship banks, has a maturity of three years. It can only be drawn on completion of the proposed Intu acquisition announced in December and will be used to repay selected Intu debt facilities.

The terms of the new facility include Hammerson's standard unsecured financial covenants.

Group treasurer Richard Sharp said: "This new facility supports our acquisition of Intu and is illustrative of the future refinancing opportunities in bringing Intu's secured debt structure onto Hammerson's unsecured debt platform. It is further evidence of the strength of our relationships with our existing banking group and continues to demonstrate the attractiveness of Hammerson's credit profile."

On Monday, Hammerson said it had rejected Klepierre's 615p per share bid on the basis that it was "entirely opportunistic" and "significantly" undervalues the group and its track record of delivery.