Hammerson: Finally Selling Value Retail Stake ?

Hammerson (HMSOLN: Baa3 pos / BBB+)

React News have reported the sale of Hammerson’s Value Retail (Bicester Village + others) stake a few times recently, but the equity market seems to be putting more faith in the story now.

• Value Retail is co-owned by Scott Malkin, APG and Simon Property and any sale needs to be agreed by all parties.
• Hammerson’s stake in Value Retail is valued at $1.886m gross as per FY23 but has £675m net debt to consider. Hence a number closer to £1.4b.
• Ceo Rita-Rose Gagne has repeatedly said that VR is non-core and is exploring a sale.
• Hammerson did a tender/exchange for the £ 25 & 26 bonds tapping the 28s by £100. They want to both reduce and extend their debt profile.
• The 25s and 26s both have a Spens call (Make Whole) at the higher of Par or Gilts Flat.
• HMSOLN 6% 26 – the Prospectus calls for the UKT 28s to be used which implies a Gilts Flat price of 103.25 though a qualified bank may advise to use a more current gilt.

{https://reactnews.com/article/hammerson-closes-in-on-1-4bn-value-retail-sale/}