Centrus advised £90m banking restructure, completes £20m in new funding

What value did Centrus add?

• Proactive identification of opportunities to enhance Broadacres Housing Association’s existing portfolio
• Development of a clear, effective strategy to deliver, reflecting Broadacres’ specific credit narrative
• Project management of the process, protecting management time whilst delivering in less than 3 months
• Effective benchmarking from our extensive market data points, maximising outcomes and providing assurance on value for money
• Supported Broadacres’ implementation of their first Loan Linked ISDA, including training of Executive and Board teams on its impact and benefits

How did this transaction benefit Broadacres?

The banking restructure provided material benefits, including:

• Reduction in margins saving Broadacres £328k p.a.
• Inclusion of ESG discount capability, offering potential further annual savings of £43k p.a.
• Implementation of a loan-linked ISDA, Broadacres first,  ensuring a flexible hedging strategy
• Boost in portfolio weighted average life from 9 years to 10 years
• Covenant updates boosting debt capacity by 27%

£20m in new funding was arranged on highly competitive terms, including accessing NatWest’s Social Loan. The transaction reduces costs, risks, and improves flexibility and liquidity.

“We are absolutely delighted with the restructure, which has improved our treasury cost efficiency, covenant headroom, and liquidity ensuring we are in an excellent position moving forward. Centrus have been a fantastic partner to work with throughout the process and the results speak for themselves, delivering excellent value for money. Centrus’ proactivity and experience in these transactions , alongside their clear and regular engagement was a vital part of delivering the transaction to a tight timeline and providing comfort to the Board that the best possible outcome had been delivered.”

Andrew McColl, Director of Resources – Broadacres Housing Association

For more information, please contact Tom Miller, Director, Housing, Education & Care

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