Centrus advises on broad portfolio restructure to unlock capacity for Estuary

Why does this transaction matter?

Centrus worked with Estuary to complete this transaction whilst Estuary were a G2 rated entity.
Full banking restructure resulted in material portfolio enhancements, including:

• Full EBITDA MRI ICR removal, including from one private placement, on favourable terms to market – materially booting capacity.
• Implementation of Estuary’s first loan linked ISDAs, ensuring hedging flexibility during volatile conditions.
• Removal of material short-term refinancing risk, boosting the banking WAL from 4 to 7 years.
• Streamlining of the portfolio by removing 2 lenders, all on an NPV positive basis, following successful negotiations with lenders.
• Raised £75m of new funding on competitive terms across a range of tenors to best meet Estuary’s funding need.
• Implementation of two loan-linked ISDAs, ensuring future hedging flexibility.

What value did Centrus add?

• Full project management from strategy formulation to final documentation, helping minimise Estuary’s time requirements whilst maximising project benefits.
• Regular and clear reporting, tailored to the audience (Executive, Committee and Board) to ensure clear recommendations and progress tracking.
• Supported on complex negotiations across banking and capital market counterparties, leveraging our relationships and extensive sector knowledge to ensure the best possible outcome. 
• Supported and guided Estuary through setting up and executing their first loan-linked ISDAs, complete with all relevant training & updating of relevant internal policies.

“We are thrilled to have worked with Centrus in securing the restructure on favourable terms, helping ensure Estuary’s treasury portfolio can support the business as we move forward with our investment aims. Centrus have been a highly dependable partner throughout the process, providing top quality analysis and advice. This combined with their clear style of communication, has ensured that we have had full confidence in the process and the benefits it has and will provide.”

Michael Hadjimichael, CFO – Estuary

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

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