Centrus advises Tai Tarian on raising £95m of new bank and capital markets funding 

Centrus advises Tai Tarian on raising £95m of new bank and capital markets funding to enable full refinance of existing debt, achieving a very substantial NPV saving on future financing costs 

Transaction Overview

• Tai Tarian is one of the largest social landlords in Wales, with 9,000+ properties across Neath Port Talbot. Established in 2011 by large scale voluntary transfer (“LSVT”) from the local authority.  
• Existing syndicated bank finance reflected these LSVT roots and timing of this initial funding but no longer met the needs of a mature organisation with significant investment and growth aspirations. 
• Centrus undertook thorough analysis to establish the case for refinance, devised the treasury strategy and, once Board approved, was then engaged to lead on implementation.  

Centrus Solution

• Comprehensive treasury strategy formulation which evidenced the business case for refinancing. 
• Full market engagement with prospective bank and private placement funders, driving competition & optimising terms.
• Refinement of strategy to reflect terms received and enable funder selection, determining the most suitable combination of bank and capital markets funding to provide interest cost management and flexibility. 
• Combination resulted in two new bank funders (RCF & Medium Term Loan) and one new long term private placement investor. 

Added Benefits

• New relationships established with three funders, on terms reflective of Tai Tarian’s high credit quality. 
• Achieved NPV saving in excess of £6m, through optimising the terms and funding structure. 
• Covenants and controls relaxed, enabling Tai Tarian to operate with maximum flexibility. 
• Centrus led throughout working closely with Tai Tarian and its other professional advisors to deliver a complex transaction.
• Regular reporting to Executive, Task & Finish Group, and Board to ensure fully empowered and able to exercise effective governance.

“When we commissioned this work, I hadn’t appreciated just how hands on you would be on a day-to-day basis but I can now see that this is where the magic really happens and where the value is derived.  It is so much more than ensuring that we get the best rate. I am so grateful for Centrus advice, support, trouble shooting, arm twisting and solutionising throughout this process. We would not have achieved the outcomes without Centrus. In the context of these reflections the Board requested that we feedback their gratitude to the Centrus team.”

Nick Tagg, Director of Finance – Tai Tarian 

“It’s been an absolute pleasure to work with Linda, Nick and the Board to deliver this refinancing and establish a treasury platform reflective of a 1^st class organisation with sustainability and tenant services at its heart. The case for refinancing was compelling but working together we achieved really excellent outcomes, driving down the cost of financing while ensuring operational headroom and flexibility is maximised. The future looks very bright for Tai Tarian” 

Paul Stevens, Executive Director – Centrus

For more information, please contact Paul Stevens.

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