Centrus advised Two Rivers Housing on £140m refinancing

Transaction overview

Two Rivers Housing have completed a refinancing that restructured £110m of existing loans and added a further £30m of new funding.

The transaction comprised £90m of term debt from Santander and a £50m RCF from Barclays. The new facilities replace legacy arrangements, improving pricing and flexibility, and better aligning with Two Rivers’ long‑term strategy.

What value did Centrus add?

Centrus provided end‑to‑end funding advice, leading the design, negotiation and execution of the transaction. Centrus:

• Leveraged detailed market insight to set clear pricing and covenant targets and hold lenders to them through the process.
• Led lender engagement and negotiations, delivering best‑in‑class pricing and terms, in several areas exceeding original targets.
• Secured widespread covenant improvements, including enhanced interest cover and gearing covenants.
• Achieved reduced margins and improved commercial terms versus the legacy loan portfolio.
• Managed execution through a volatile interest rate environment following the escalation of conflict in the Middle East, ensuring robust decision‑making and governance throughout the process.

How did this transaction benefit Two Rivers Housing?

The transaction significantly strengthened Two Rivers’ financial position and long‑term capacity to invest. Key benefits included:

• Widespread covenant improvements, including improved ICR and gearing headroom.
• Extended loan and hedging duration, and an additional £30m of new funding.
• Reduced margins and enhanced value for money.
• A robust funding platform to support ongoing investment in existing homes and new affordable housing.

“Centrus provided clear, expert advice throughout the refinancing, combining strong market insight with disciplined execution. They helped us secure highly competitive funding terms and supported robust governance and decision‑making around hedging during a period of heightened interest rate volatility. The new facilities give us greater flexibility and value for money, enabling continued investment in our homes and communities.”

Carol Dover, Deputy Chief Executive – Two Rivers Housing

“This transaction strengthens Two Rivers’ funding platform through competitive terms, improved flexibility and disciplined execution in a volatile market environment. It has been a pleasure to work with the Two Rivers’ team throughout this enjoyable process.”

Tom Archer, Director – Centrus

For more information, please get in touch with Tom Archer, Director of Housing, Education & Care.

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