Centrus arranges £100m funding for Caredig

Transaction Overview

Caredig manages around 3,000 homes in South West Wales, with a strong reputation and track record for making a positive difference in its local community.

The Housing Association has undertaken a series of transactions to transform its treasury portfolio. This includes arranging a new 25-year £26m fixed rate facility from Principality to refinance existing shorter dated and more restrictive debt. A new £20m RCF has also been arranged with Santander.

A further c£50m of existing funding has been restructured, with more flexible covenants and controls.

Centrus Solution

As treasury and funding advisor, Centrus worked closely with Caredig to develop strategy and prepare materials to position its credit strengths to funders.

Centrus led negotiations across the transactions and guided Caredig through running a multi-funder process (covering all bank and capital markets options), in seeking the long dated finance.

This dynamic process allowed for agility, right up to the point of pricing enabling Caredig to optimise the outcomes.

Outcome

• The new funding strongly enhances Caredig’s treasury position, significantly reducing long term refinancing and interest rate risk.
• Further, the funding arrangements provide additional capacity for Caredig to invest in existing properties (including for de-carbonisation), as well as increase its development programme for new homes.
• These transactions build strongly upon the significant financing restructure undertaken in 2020, ensuring the treasury platform is robust but sufficiently flexible to adapt to future needs.

“Centrus has supported us every step of the way, providing invaluable and tailored advice and assurance, with a flexible and dynamic approach. This approach ensured we achieved the best outcomes possible in a very challenging environment”

Cerys Gregory, Director of Finance – Caredig

For more information, please contact Paul Stevens, Managing Director – Centrus

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