Centrus advises Curo on £100m private placement to deliver new affordable homes

Transaction Overview

Bristol and Bath-based housing association, Curo has secured a new £100m fully deferred private placement from Scottish Widows. The facility will be drawn in two tranches; £40m in 2024 and £60m in 2025, in line with the development of Curo’s affordable homes programme.

The Housing Association aims to work with residents and partners to face external challenges and to deliver their purpose of “Homes for Good”.

Centrus Solution

With a funding requirement not arising until 2024 and significant volatility in the macroeconomic environment, Centrus advised Curo that moving quickly to secure funding in advance could de-risk its programme significantly. Centrus supported as financial advisor throughout the process, leading on both delivery and execution.

Centrus lead the selective marketing process, engaging only with those investors which could provide the deferred funding, quantum and covenants required.

Added Value

• Centrus effectively identified and negotiated the optimal terms for Curo in a short time period, ensuring the right fit with their Corporate Strategy and growth ambitions.
• Deferred tranches will enable effective delivery of Curo’s programme over the next five years, whilst avoiding the heavy cost of carry by drawing the full £100m day one.
• Both an EBITDA only interest cover ratio and limited restrictions on intra-group activities will be essential in delivery of the programme and Curo’s wider group activities.

“It is always a pleasure working with Curo and it was great to be able to deliver a suitable structure quickly and efficiently. This deferred funding will enable Curo to maintain its properties to a high standard and continue to grow with confidence.”

Lawrence Gill – Director, Centrus

For more information, please contact Lawrence.Gill@centrusadvisors.com

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