JSE-listed Hyprop on Tuesday announced that it had, in the three months since December 31, 2018, successfully refinanced R4-billion of external debt.
On March 15, Hyprop announced the issue of two new unsecured five-year notes, HILB11 and HILB12, in terms of Hyprop’s Domestic Medium Term Note Programme. The note issues raised R500-million.
These proceeds are earmarked to redeem the HILB05 bond of R350-million, which matures in July; to finance capital expenditure to improve the entertainment offerings at Hyprop’s malls, most notably the Ratanga Junior project at Canal Walk; and for new tenant fit-outs necessitated by the reduction of space occupied by the Edcon group.
With regard to Hystead, the group has signed agreements for the refinancing of €50-million of debt with an original maturity date of February; €53-million of debt with an original maturity date of March 2020, for five years to 2024; and €R110-million of debt with an original maturity date of March 2020, for five years to 2024.
The refinancing and extensions are expected to address the concerns raised by Moody’s in its decision to downgrade Hyprop’s credit and issuer ratings in February, that Hyprop will rely on external financing to cover R5-billion of debt coming due in the next 18 months.
Work on refinancing the group’s dollar-denominated debt in its sub-Saharan Africa portfolio and the rand-denominated bonds, due for redemption in August and November, and addressing the other concerns raised by Moody’s, is continuing.