Prior to the raise, Muir Group’s existing RCF had restrictive covenants and was nearing maturity.
Centrus advised on addressing these risks by securing a new £40m RCF that enhanced covenants, strengthened liquidity and extended the facility term, all supporting Muir Group’s growth strategy while ensuring value for money.
What value did Centrus add?
Developed the treasury strategy: Centrus leveraged our market-leading sector insight to develop a treasury strategy which:
Lowers refinancing risk and improves the debt maturity profile
Reduces covenant risk
Bolsters overall liquidity
Strengthens overall hedging ratio
Arranging and executing funding:
Centrus led a structured and competitive funding process that identified cost-effective and covenant supportive lenders, before recommending an option that aligned with Muir Group’s strategy.
The documentation and execution process was managed by Centrus to close, with assurance reporting provided throughout.
“We are extremely pleased to have completed this RCF raise and are delighted to have had Centrus’ support and expertise throughout the process. The Muir Group team and board members have benefitted from the confidence and clarity provided by Centrus.”
Nia Hughes, Executive Director of Resources – Muir Group
For more information, please contact Lawrence Gill, Director, Housing, Education & Care or Mithun Kathirgamanathan, Assistant Director, Housing, Education & Care.
Welsh Water required year-end and half-year-end valuation expertise for their derivatives portfolio, along with on-demand support related to audit review. This warranted:
Understanding how they were currently producing their valuations and identifying their roadblocks.
Analysing their extensive existing derivatives portfolio, which primarily consisted of inflation-linked swaps
Understanding which current valuation figures were required for their financial statements.
Agreeing on a methodology with Welsh Water and their auditors for producing the figures.
Centrus’ solution
Centrus’ role as a valuation technology provider allowed Welsh Water to rely on a suite of valuation and risk management reports for its Inflation-Linked Swaps and Interest Rate Swaps portfolio.
Writing a detailed methodology paper, highlighting the market data sources used for valuation purposes, the number of simulation paths used, the credit curve, funding spread, and the loss given default probability.
Initial upload of Welsh Water’s derivatives portfolio to our valuation analytics platform.
Agreement on reporting deliverables, fully bespoke to meet requirements.
Centrus worked closely with the client to ensure that any auditor questions were answered.
Centrus’ value added
Year-end valuation Report: Centrus provided Welsh Water with timely and insightful reporting of their derivatives valuation for year-end, adhering to the principles outlined under IFRS 13 Fair Value Measurement.
The valuation figures required by Welsh Water were delivered on time for their financial year-end and included CVA, DVA, FVA, XVA, and Fair Value.
Centrus’ expertise in this area added value by assisting Welsh Water with challenging auditors’ questions.
Ongoing management and support were provided for any changes to Welsh Water’s derivatives portfolio.
“The Centrus team has understood our requirements, helped agree the methodology with our auditors and developed an efficient process that is now embedded in our semi-annual financial reporting. Their expertise and modelling capabilities on xVA has been particularly useful.”
Alan Carr, Treasurer – Welsh Water
For more information, please contact Gilles Bonlong, Head of System Implementation – Centrus.
Sonnedix is a leading renewable energy producer with over a decade of sustainable growth, is dedicated to developing, building and operating renewable energy projects with a focus to delivering green, affordable electricity. The project focused on refinancing the debt associated with most of Sonnedix’s extensive portfolio of solar farms across Spain, Italy and France. The objective was to optimise the existing financial structure by refinancing €1.6+ billion in debt while restructuring the hedge strategy, maintaining a hedge ratio between 70% and 90% of the portfolio. Centrus played a pivotal role as Hedge Advisors, streamlining Sonnedix’s complex portfolio of over 130 swaps and crafting a robust hedge strategy tailored to their needs.
Centrus’ solution
Centrus partnered with Sonnedix and their debt advisors to design a customized, efficient hedging strategy. This included:
Strategic Scenario Analysis: Running detailed quantitative assessments to evaluate multiple scenarios, focusing on maximising debt refinance benefits and shareholder NAV.
Hedging Product Exploration: Evaluating a range of solutions, including caps, floors, forward-start swaps and the termination or novation of existing swaps, to find the optimal mix.
Pre-Hedging Measures: Implementing a pre-hedge strategy to mitigate interest rate risks ahead of financial close.
Market Engagement: Conducting a competitive process involving 20 banks to analyse appetite, pricing, product availability and overall suitability.
Power Hedging: Incorporating potential for power hedging counterparties in the financing structure for future risk management
Centrus’ value added
Centrus delivered tangible results, driving significant value for Sonnedix:
Cost Savings: A competitive auction process reduced the all-in swap cost materially through the process.
Streamlined Portfolio: Reduced the number of swaps by over 60%, simplifying operations and enabling more efficient management.
Seamless Transition: Executed more than 50 swap terminations and implemented new hedges, ensuring fair and transparent pricing while transitioning smoothly to the updated strategy.
Efficient Execution: Advised on commercial doc negotiations, executed hedging documents and managed four-way novations for over 30 swaps.
Post-Execution Review: Conducted meticulous reviews of trade confirmations to ensure commercial accuracy.
By leveraging their expertise and structured approach, Centrus ensured Sonnedix achieved a simplified, cost-efficient hedging solution, aligning with their long-term commitment to sustainable energy.
“This has been the most complex hedge restructuring in the history of Sonnedix. Hedging was one of the drivers to create value in this transaction and Centrus as hedging advisor played a key role to capture it. The transaction involved several countries, tax and legal jurisdictions, with a vast portfolio of legacy swaps. They managed every step with exceptional thoroughness and professionalism. From the pre-hedging execution and selection of the hedge coordinator, where their advice was critical to make the right decisions, to the auction process among banks and design of allocations, where the design created competition and optimized the outcome, and post-closing actions, the overall delivery for the full process has been extraordinary. We strongly recommend Centrus as hedging advisor.”
Pablo Trapero, VP Project Finance – Sonnedix
For more information, please contact Mark Taheny, Managing Director, Dublin.
With the support of Centrus, Wandle Housing Association has successfully rolled out titanTreasury as their new Treasury Management System (TMS). Wandle Housing Association has grown into an organisation that now manages over 7,000 homes across nine South London boroughs. Wandle is committed to delivering on its vision of providing homes to be proud of and services you can trust.
To support their operations, Wandle sought an integrated TMS capable of calculating SONIA-based interest rates, assessing fixed-rate debt costs, and automating monthly and quarterly report production.
Centrus solution
titanTreasury is a powerful Treasury Management System (TMS) crafted to support finance teams and treasurers with advanced features for tracking and managing a wide range of risks, including market (interest rate, FX, and commodity), credit, and liquidity exposures.
During the rollout, Centrus worked closely with Wandle’s treasury team, delivering comprehensive training and support to ensure they were fully prepared to use titanTreasury effectively and confidently.
titanTreasury enables precise SONIA-linked interest calculations and ensures that all payments are made on schedule. Wandle’s treasury team is now confident that the system can reliably oversee interest payments, handle capital repayments, and calculate break costs for their fixed-rate debt structures.
Value added
titanTreasury benefits:
Oversight of upcoming payments.
Access to month-end, quarter-end and regulatory reports.
Clear view of debt maturity ladder.
Automated monthly interest accruals.
With streamlined financial operations, Wandle is now in a stronger position to fulfil its purpose of supporting people across South London who need a home. By improving their financial processes, they can better tackle the shortage of good-quality affordable housing and continue providing homes for those most in need.
“Centrus demonstarted a thorough understanding of our requirements and developed a detailed and practical implemention strategy.
Post-implementation support continues to be both responsive and helpful and has been invaluable during the inital phase of deployment.
I look forward to a long and mutually beneficial relationship with titanTreasury team.”
Ian Anderson, Asisstant Director, Corporate Finance – Wandle Housing Association
For more information, please contact Gilles Bonlong, Head of System Implementation – Centrus.
Centrus advised Abri Group and Octavia Housing on the formation of their new partnership to become a 55,000 home organisation, increasing capacity by £200m p.a. and enhancing financial resilience. The engagement was delivered in a cost-effective manner, with focused lender negotiations protecting >95% of the value in existing bank facilities and forward consent achieved for Octavia Housing to fully combine with Abri Group in the future.
Why does this transaction/engagement make a difference?
Delivered partnership in a cost-effective manner; focussed negotiations with lenders protected >95% of the value in existing bank facilities.
Target financial covenant levels and definitions harmonisation achieved, resulting in substantial increase in capacity and financial resilience by £200m p.a. on average over the next decade, providing Abri with a stronger platform to build new homes and invest in existing ones.
Greater corporate freedoms around financial support and merger consents were negotiated, including forward consent for Octavia Housing to fully combine with Abri Group in future.
Arranged £175m of new RCFs with existing bank lenders at attractive pricing and suitable covenant packages, bolstering medium-term liquidity and materially reducing near-term refinancing risk.
What did Centrus do to make it happen and add value?
Used our comprehensive knowledge of each lender gained through our unrivalled experience in housing association mergers, particularly concerning lender exposure limits, tenor appetite and preferred covenants, to negotiate a great economic outcome which represented value for money for the combined organisation. This also included successfully negotiating lender transaction fees down to reasonable levels.
Provided detailed insight into potential treasury costs and benefits that could be incurred through the transaction, as well as a fair valuation of capital markets debt liabilities being transferred, that allowed Abri to construct a thorough and prudent financial plan for the combined organisation.
Developed a detailed funding strategy for the combined organisation which deals with short-term refinancing requirements and provides a framework for meeting future funding needs. The strategy enables a significant reduction in treasury risks while providing flexibility over future funding sources and timing.
“Abri’s partnershipwith Octavia allows the combined organisation’s vision to be realised; a founding housing association committed to exemplary homes and services. It provides the combined organisation with the opportunity to accelerate Abri’s strategic intent, leveraging its growing influence and resilience to provide excellent homes and services to customers, and best-in-class employment for staff.
The Centrus team’s unwavering commitment and impressive performance played a pivotal role to enable the rescue and preservation of Octavia Hill’s housing management legacy, allowing the combined organisation to continue her work as a reformer and positive disruptor. A reimagined Octavia Foundation will be central to this, with a broader remit across community investment, education and research, and thought leadership.
Centrus’ expert advice and support during the analysis, negotiation and completion stages of our engagement with a diverse group of funders was invaluable. This engagement was a particular challenge given Octavia’swell reported regulatory issues at the time, however the team at Centrus, led by Lawrence Gill and Akhil Shah, delivered on key targets within challenging timelines.
The Centrus team provided real commercial insight and helped us make key decisions on structure and terms, supporting through complex negotiations. They were proactive and very responsive, and great to work with as always.”
Caroline Moore, Chief Financial Officer – Abri Group
For more information, please contact Lawrence Gill, Director, Housing, Education & Care – Centrus.
Centrus provided strategic advice and support to Antin Infrastructure Partners and the founders of Proxima, Rachel Picard and Tim Jackson, in establishing France’s first privately owned high-speed rail operator. The project involved securing Antin as the sole equity provider and delivering the necessary financial framework to launch operations, which will add over 10 million new high-speed rail seats annually to meet growing capacity demands in France.
Centrus’ solution
Centrus acted as a commercial and financial advisor, playing a crucial role in the competitive procurement process for a fleet of 12 new high-speed trains. The team also secured a long-term maintenance agreement with Alstom and advised on the arrangement of a senior debt facility to finance the train acquisition. These solutions ensured the project’s financial viability while maintaining the high standards required for a landmark infrastructure initiative.
Centrus’ added value
By leveraging its expertise in transportation finance and its commitment to sustainable infrastructure, Centrus delivered a tailored financial strategy to bring Proxima to fruition. Rachel Picard acknowledged the dedication of Centrus’ team in reaching this milestone, while Managing Director Stephen Layburn highlighted Proxima’s role in supporting global sustainability efforts through enhanced mass transit solutions. The successful launch of Proxima underscores Centrus’ capability to drive transformative infrastructure projects.
“Special thanks to Steve Layburn and Louis Dubois in the Centrus Transportation team, for their commitment and hard work on getting the project through to this important milestone.”
Rachel Picard, CEO – Proxima
“High quality mass transportation is critical to the global ambition to reduce carbon emissions. Proxima will deliver more the 10 million new seats on the high-speed rail network in France to support this objective. We are proud to have been part of this journey with the founders and Antin, and to play our part in birth of this new business venture.”
Centrus’ client, North West Electricity Networks (UK) Limited (“NWEN (UK)”), NWEN (UK) is an electricity company based in Manchester, England focused on the design, construction, and operation of electricity networks. NWEN (UK)’s wholly owned subsidiary, Electricity North West (Construction and Maintenance) Limited, provides design, construction, control, operations, and maintenance services to private electricity infrastructure owners. Another wholly owned subsidiary of NWEN (UK) is Electricity North West Limited, the licensed distribution network operator for the North West of England, including Greater Manchester, Lancashire, and Cumbria.
NWEN (UK) has committed to invest an initial £40m to enable the upgrade and expansion of the private electricity distribution network (“PDN”) to service existing and future tenants. When complete, it is expected to be one of the largest PDN’s in the UK.
This opportunity is a flagship transaction for NWEN (UK), cementing it as a leading provider of private infrastructure-as-a-service solutions.
Centrus’ solution
Centrus acted as both the financial and commercial advisor to NWEN (UK) which included:
Identifying an appropriate capital commitment structure and valuation methodology for the new joint venture.
Assisting NWEN (UK) in the design and preparation of key due diligence workstreams to support the acquisition and joint venture agreements.
Comprehensive support of the commercial negotiations with the joint venture partner.
Support with investment and valuation case preparation.
Project management of transaction with an embedded team acting as an extended arm of NWEN (UK).
Centrus’ added value
Successfully supported NWEN (UK) in valuing the transaction to achieve required internal returns and placing NWEN (UK) ahead of the competition to obtain exclusivity.
Successfully created a commercial structure that supported the transformation of the NWEN (UK) private electricity infrastructure-as-a-service solution.
Centrus worked collaboratively with NWEN (UK)’s legal advisors, Pinsent Masons, to successfully close the transaction.
“This is a great opportunity for NWEN (UK) to continue to expand its investment in new zero enabling electricity infrastructure and to deliver high-value jobs and unlock economic growth in the North of England. Centrus were instrumental in assisting us design and implement an investment structure and were crucial in supporting us through financial close.”
Ian Smyth, CEO – North West Electricity Networks (UK) Limited
“Centrus is delighted to support its valued client in this exciting collaboration. This joint venture represents a unique opportunity for NWEN (UK) to expand its non-regulated business and invest in critical infrastructure that will drive regional economic growth. We’re proud have played a significant role in helping deliver this ambitious project and look forward to seeing the positive impact it will bring to the community.”
North Sea Miodstream Partners (NSMP) owns and develops large-scale midstream oil and gas assets in and around the North Sea. The company refinanced its existing bank financing with a combination of bank and institutional funding, in GBP and EUR currencies. With a backdrop of significant volatility, the process required careful interest rate risk management of both incumbent hedge positions, as well the new hedging structures to be put in place. Early-stage risk management resulted in locking in favourable swap rates, providing cashflow certainty and a smooth hedging process.
Centrus’ role
Centrus played a key role in managing the hedging process, ensuring an optimal pre-hedging strategy and execution. This included:
Pre-Hedging Analysis: Conducting a detailed assessment of various pre-hedging options, including opportunities to recycle existing in-the-money hedging into the post.
Hedge Execution Coordination: Selecting and liaising with the hedge coordinator to implement the most effective pre-hedging structure, incorporating novations and reprofilings.
Hedging RfP Management: Running an efficient request-for-proposal (RfP) process to bookbuild a hedging programme at attractive levels.
Bank Negotiations: Negotiating swap charges and determining final bank allocations to optimise execution.
Legal & Commercial Review: Collaborating with legal teams to assess the commercial aspects of all pre- and post-trade hedge documentation.
Outcomes
The pre-hedging interest rate swap strategy resulted in the company de-risking the refinancing between signing and closing, all with a backdrop of significant market volatility. Locked in rates across both EUR and GBP bank debt tranches, providing cost of funding certainty for the next 7 years. Optimal risk management whilst providing shareholder value through careful consideration of existing hedgin. Centrus ensured NSMP achieved best value for its client, whilst ensuring a transparent and competitive process with hedge counterparties
“Centrus supported us in developing a dynamic hedging strategy, helping us manage risk effectively amid market volatility. The hedging approach secured competitive rates and provided certainty via a smooth implementation process. We look forward to working with Centrus on future transactions.“
Richard Ozsanlav, CFO – NSMP
“We are pleased to have supported NSMP on this significant refinancing. By collaborating closely with NSMP, we developed an effective hedging strategy that provided certainty during the refinancing and for the years ahead, allowing the business to focus on its commercial operations.“
Barney Harris, Assistant Director – Centrus
For more information, please contact Barney Harris, Assistant Director – Centrus
Hafod, a Welsh registered registered social landlord providing affordable housing and care support, has obtained £70m in new funding whilst also restructuring £90m of debt across their treasury portfolio.
Hafod’s treasury portfolio was characterised by legacy bank facilities which required a complete restructure to:
Modernise covenants; gearing and interest cover covenants required alignment to market – this allowed them to materially increase headroom and reduce covenant risk.
Suitably fund the business plan; the debt portfolio required a reshape to improve cost efficiency and de-risk the business.
Manage risk; bank facilities, and associated fixed rates were to mature in the near term and required refinancing/restructuring to reducing interest rate and refinance risk.
Centrus’ role and value add
Centrus acted as financial advisor, identifying both the optimal funding solution to meet Hafod’s needs and then subsequently seamlessly executing it, ensuring all Hafod’s objectives were achieved.
Centrus’ in-depth knowledge of the market meant we were perfectly placed to negotiate on Hafod’s behalf to reset current covenants, request additional funds and have a targeted approach to the wider market; ensuring that terms achieved both value for money and Hafod’s treasury objectives.
Centrus’ diligent management of the process, from origination of the strategy to executed documentation, meant the process was efficiently delivered within the required timeline. This was particularly important when external conditions meant that Hafod had to react quickly and efficiently to ensure the best possible outcome.
“Centrus worked with us to develop our strategy before then leading on its execution. The team at Centrus ensured we have been able to control the process throughout despite, at times, a challenging backdrop and ultimately to materially improve our treasury position. With this work complete we can now focus on delivering our ambitions to build 500 homes over the next 5 years”
Chris Judson, Interim Corporate Director – Finance, Investments and Development, Hafod Housing Association
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