Centrus advises on merger between Melin Homes and Newport City Homes

Why does this transaction matter?

Optimising the treasury platform enables Hedyn to deliver more for customers & residents, utilising cost efficiencies and increased debt capacity for stock investment and the development of new homes.

What value did Centrus add?

• Sole financial advisor engaged to develop treasury strategy, construct combined business plan, lead on lender negotiations, provide assurance reporting to Board’s and project manage to completion deadline.
• Merger created an opportunity to renegotiate and restructure bank finance with significantly enhanced terms, reducing the weighted average margin and treasury risks while improving operational flexibility.
• Effective positioning of a strengthened credit risk profile enabled £60m of new funding to be arranged on highly attractive terms, bolstering liquidity to fund growth in the combined business plan.
• 100% value protected in existing capital markets facilities.
• Target financial covenant levels achieved with harmonised definitions, lowering covenant risk and increasing financial resilience by £25m p.a. on average over the next 5 years.
• Greater corporate freedoms around financial support and future merger consents negotiated, ensuring Hedyn is ready for the future.

“Centrus have provided us with a fantastic service throughout the merger process. The experience and professionalism of Paul and the team have been second to none. Together, we’ve maximised opportunities, and navigated complexities, to achieve this great result.

Thanks to the merger of Melin and Newport City Homes, we can create even greater capacity. And, through Hedyn, we can invest more to serve our customers and communities – and enable our colleagues to make a greater impact through the work they do.”

Gareth Yeoman-Evans, Executive Director of Finance and Resources – Hedyn

For more information, please contact Thomas Archer, Director, Housing, Education & Care or Paul Stevens, Executive Director, Housing, Education & Care.

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