Centrus arranged £70m of new funding and advised a £90m portfolio restructure

Transaction overview

Hafod, a Welsh registered registered social landlord providing affordable housing and care support, has obtained £70m in new funding whilst also restructuring £90m of debt across their treasury portfolio.

Hafod’s treasury portfolio was characterised by legacy bank facilities which required a complete restructure to:

1. Modernise covenants; gearing and interest cover covenants required alignment to market – this allowed them to materially increase headroom and reduce covenant risk.
2. Suitably fund the business plan; the debt portfolio required a reshape to improve cost efficiency and de-risk the business.
3. Manage risk; bank facilities, and associated fixed rates were to mature in the near term and required refinancing/restructuring to reducing interest rate and refinance risk.

Centrus’ role and value add

• Centrus acted as financial advisor, identifying both the optimal funding solution to meet Hafod’s needs and then subsequently seamlessly executing it, ensuring all Hafod’s objectives were achieved.
• Centrus’ in-depth knowledge of the market meant we were perfectly placed to negotiate on Hafod’s behalf to reset current covenants, request additional funds and have a targeted approach to the wider market; ensuring that terms achieved both value for money and Hafod’s treasury objectives.
• Centrus’ diligent management of the process, from origination of the strategy to executed documentation, meant the process was efficiently delivered within the required timeline. This was particularly important when external conditions meant that Hafod had to react quickly and efficiently to ensure the best possible outcome.   

“Centrus worked with us to develop our strategy before then leading on its execution. The team at Centrus ensured we have been able to control the process throughout despite, at times, a challenging backdrop and ultimately to materially improve our treasury position. With this work complete we can now focus on delivering our ambitions to build 500 homes over the next 5 years”

Chris Judson, Interim Corporate Director – Finance, Investments and Development, Hafod Housing Association

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