Centrus successfully supported Jigsaw Homes Group in obtaining new funding and optimising its treasury portfolio, unlocking significant capacity to deliver new homes.
Centrus was appointed as Jigsaw’s retained treasury advisor in April 2023, marking the beginning of a strategic partnership aimed at further optimising Jigsaw’s treasury operations.
Starting with a comprehensive treasury strategy review, the work focused on renewing Revolving Credit Facilities (RCFs), funding Jigsaw’s development programme and optimising and harmonising covenants and controls. Centrus’ approach involved a thorough examination of all treasury aspects including funding and liquidity, benchmarking, and credit rating analysis.
“The report demonstrated an understanding of our financial and treasury landscape and while our treasury portfolio was already robust and well managed, Centrus broughta clear delivery pathway, which has allowed us to obtain the new facilities we needed while optimising our portfolio.”Rosie Marsh, Operations Director – Finance at Jigsaw Homes Group
Centrus devised a lender engagement plan and fronted negotiations with both bank and capital market lenders. By leading the discussions, Centrus deployed its extensive insights gained from past transactions, having arranged, or restructured over £6bn of bank debt for its housing clients in the past 24 months alone. This expertise ensured the complex financial negotiations were carefully navigated and that the resulting transaction not only met, but exceeded Jigsaw’s key objectives.
The result of negotiation and strategic review between Jigsaw and Centrus was a significant transaction that included:
- Increased RCFs totalling £103m with three lenders.
- A new £50m private placement to support Jigsaw’s ambition to develop 4,000 new homes in the next five years.
- Restructuring c.£700m of existing bank and private placement debt to better improve and harmonise covenants, thereby increasing capacity and reducing treasury risks.
All this was achieved while increasing the tenor of Jigsaw’s liquidity facilities and lowering their average interest margin and non-utilisation fees.
Throughout the process, which was supported by law firm Devonshires, Centrus maintained transparent communication, offering regular reporting to the Board to keep them informed and engaged. Additionally, Centrus provided comprehensive transaction execution support, ensuring an efficient and well-run process.
“Working with Jigsaw has been an exciting and rewarding project already. Our combination of innovation and experience allowed us to confidently meet – and surpass – Jigsaw’s objectives for its treasury operations, ensuring it could focus on what it does best; creating homes and building lives.”
“Jigsaw’s decision to appoint Centrus as its retained treasury advisor underscores our reputation as a trusted partner in the housing sector. The collaboration demonstrates Centrus’ expertise in navigating complex financial landscapes and delivering tangible results for our clients”.John Tattersall, Managing Director – Centrus
“I’m proud to have supported and advised Jigsaw through this significant restructure and am extremely pleased with the outcomes we have achieved together. It has been rewarding to collaborate with Jigsaw on this journey to agree solutions, and to see these through to execution and implementation”
“We are looking forward to supporting Jigsaw in the future as they continue to deliver on their ambitious strategy, and this result sees them enter 2024 with strong liquidity and a diverse lender base to support their development goals”.Tom Archer, Assistant Director – Centrus.
“As we continue with our plans to help tackle the current shortage of new affordable housing, this partnership approach helps us take another step forward in our commitment to deliver 4,000 homes over the next five years, as well as investing in projects and assets that increase life opportunities for our residents. We are ready to continue to develop our position from this strong footing.”Paul Chisnell, Executive Director of Finance – Jigsaw Homes Group
For more information, please contact John Tattersall