Centrus advises RHA Wales on refinancing of bank debt through arrangement of new £30m Private Placement

Transaction Overview

RHA is a Registered Social Landlord based in Rhondda Cynon Taff. One of the oldest Housing Associations in Wales, with over 40 years’ experience of delivering high-quality services to tenants and stakeholders, RHA owns and manages approaching 2000 homes and properties and provides a range of services to over 3000 people. RHA’s mission is to provide quality homes, regenerate communities and improve lives.

Centrus Solution

Following a strategic treasury review and options appraisal undertaken by Centrus, we were appointed to implement the agreed strategy which had at its heart a rationalisation of existing bank funding and refinance through accessing the debt capital markets, enabling RHA to take advantage of historically low long-term interest rates. Rationalisation has enabled RHA to simplify and streamline its financing arrangements, maximise financial covenant headroom and therefore debt capacity and financial resilience, while at the same time building on established and supportive relationships, with Barclays retained for RCF & Term facilities and M&G providing an additional £30m Private Placement.

Added Benefits

This competitively priced finance when coupled with a flexible package of covenants and consents, has enabled RHA to increase the longevity of its debt portfolio (with the weighted average life of refinanced debt increasing by c.20 years), thereby better matching its asset base and investment decisions, whilst providing greater interest rate protection for the business plan.

“I am delighted that we have managed to achieve this positive outcome in a challenging operating environment. Our strategic review into our treasury management strategy has been expertly led by Centrus and I am very pleased with the way in which our Board and Executive team have worked closely over the last 12 months to deliver on the objectives we set.”

Luke Takeuchi, CEO – RHA

“The key to successful implementation of this strategy was ensuring objectives were clearly articulated and understood by all stakeholders at the outset, planning and preparation for engagement with funders, including potential new investors, and guiding RHA through navigating a somewhat volatile market and the complexities of achieving this restructure and refinance. It has been a pleasure working with the Executive and Board of RHA and we are delighted with the excellent outcome.”

Paul Stevens, Managing Director – Centrus

For more information, please contact paul.stevens@centrusadvisors.com

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