British property development and investment company Hammerson has announced a deal with nine US institutions for a placement of $443m (£271m). The placement will come in the form of seven 10 and 12 year notes, which will come in two tranches during 2014.
The sale will in part fund the company's upcoming bond maturities including a 2015 Eurobond of €480m (£399m), which has a coupon of 4.8 per cent.
Chief financial officer, Timon Drakesmith commenting on the deal said:
This financing locks in long-dated funding with appealing coupons, whilst the flexible terms allow us to retain the immediate benefits of low floating rates. Being Hammerson's debut issuance into this market, we are delighted to have created new debt investor relationships to further diversify our sources of finance and build on our strong liquidity position.
By the time of the final drawdown in June 2014, the placement will have repaid existing floating rate debt and increased the proportion of the Group's fixed rate debt by around 13 per cent.