Centrus advises mhs on £180m bank funding and £90m in new capital markets

Transaction Overview

mhs Homes Group (“mhs”), provides over 9,500 homes in the Thames Estuary region, and is the largest independent social landlord in the UK. 

With ambitions to develop 600 new homes over the next 5 years, its mission is to help end the housing crisis in North Kent by providing safe and sustainable homes.

The transactions involved 2 new private placements for £90m, restructuring the £180m bank portfolio including £40m in new RCF funding 

Centrus Solution

• Supported mhs from formulation of strategy, to engagement with a broad range of funders, to execution of the multiple financing transactions.
• Given volatile market conditions, Centrus ran dual track PP and bank processes and were involved in engaging a wide range of banks and investors, employing a dynamic approach to provide clarity of the most attractive solutions, and agility to adapt if conditions changed.
• Strong focus on project management ensured the multiple funding elements were handled efficiently while providing assurance to mhs executive and board.

Outcome

• £90m of private placements from Legal & General Investment Management and PIC, achieving long dated fixed rate funding, extending portfolio tenor, reducing long term rate and refinancing risk
• Restructured funding of  over £140m, providing more flexible covenants and less restrictive controls to support future development and net zero investment
• Further £40m in new liquidity funding to further enhance resilience 
• Ensured optimal outcome achieved, balancing cost, risk management and flexibility to drive demonstrable VfM

“Centrus’ support has been invaluable throughout the process, with ongoing assurance and advice. This has allowed us to manage the challenging market environment and achieve  these great outcomes”.

Bruce Shelmerdine, Finance Director, mhs homes group

For more information, please contact Paul Stevens, Managing Director – Centrus

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