Bernicia is a leading social housing provider in North East England, managing over 14,000 properties and providing a home to over 60,000 residents.
Working with Centrus through strategy and execution, Bernicia has secured two new RCFs totalling £60m.
The transaction aimed to bolster and extend Bernicia’s liquidity and remove EBITDA-MRI covenants.
- Centrus worked closely with Bernicia on the initial treasury strategy including advising on the structure, tenor, and covenants to be targeted on the new facilities.
- A market engagement process resulted in multiple funding offers from both new and existing lenders.
- The process increased competitive tension and helped to drive the best terms and pricing for Bernicia.
In addition to bolstering liquidity and removing EBITDA-MRI, the new funding also delivered a range of additional benefits, including enhanced corporate flexibility through improved permitted merger and on-lending limits.
The new facilities also include lower margins than the existing RCFs which they replace, allowing Bernicia to reduce interest costs as well as reduce treasury risks.
Taken altogether, the new funding enhances Bernicia’s treasury platform and supports the delivery of wider corporate objectives.
“We are delighted to have worked with Centrus on the arrangement of two new RCF facilities. The facilities will ensure that Bernicia’s strong levels of liquidity are maintained, with the removal of restrictive covenants and improved corporate controls supporting the modernisation of our treasury portfolio.”Janette Longstaff, Executive Director, Finance – Bernicia
“Centrus is pleased to have arranged this funding for Bernicia. The competitive funding process, aided by Bernicia’s strong credit profile and presentation to potential lenders, resulted in very favourable terms that delivered on the key treasury objectives set at the outset, including removal of MRI.”Paul Stevens, Managing Director – Centrus
For more information, please contact Paul Stevens.