Centrus arranges £150m 10-12-year Private Placement for HICL Infrastructure PLC

Transaction Overview

Managed by InfraRed Capital Partners, HICL is a FTSE 250, London-listed UK investment company that seeks to offer investors stable, sustainable long-term returns from investments in core infrastructure. 

HICL has successfully raised long-term finance via a £150m Private Placement at a weighted average interest rate after hedging of 5.75%.

The funds raised will be used to reduce the existing drawings on the Group’s RCF.

Certainty over the effective interest rate of the Private Placement was achieved through execution of a pre-hedge strategy using a gilt-lock.

Centrus Role

Centrus acted as financial advisor and sole arranger to HICL:

  • The transaction leveraged our understanding of the market to engage a select pool of prospective investors, ultimately leading to the private placement being more than four times oversubscribed.
  • Centrus advised and led on the execution of a pre-hedge strategy to provide certainty to stakeholders on the underlying gilt rate prior to PP pricing.
  • We supported management end-to-end including the interaction with the Fund’s RCF, acting as an extension of the HICL team to deliver a timely, competitive fund raise.

Added Value

  • HICL has achieved long-term financing at a highly competitive margin, reducing overall borrowing costs at a time of interest rate uncertainty.
  • The private placement provides greater certainty to stakeholders of HICL, locking in a stable source of funding at a consistent cost over a 10-12 year period.
  • Accessed a different source of funding to both the Bank RCF and equity markets.

“We are pleased to have worked with Centrus to diversify our capital sources and access long-term funding. Their market knowledge and experience was key in assisting us navigate the challenging financial environment and  helping us achieve our funding objectives”

Helen Price, CFO – InfraRed

“This is a great outcome for HICL and we are delighted to have helped the company successfully navigate the diversification of its funding sources and secure its first long term institutional debt facility at the fund level”

Geoff Knight, Executive Director – Centrus

For more information, please contact Geoff Knight.

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