Centrus & Bevan Brittan advise ForHousing on a £215m refinancing, increasing ICR headroom via MRI removal, to enable increased investment into existing and new homes

Centrus, acting as Treasury Advisors and debt arrangers, and Bevan Brittan, as Legal Counsel, are delighted to have supported on the recently announced successful completion of a landmark £215 million refinancing for ForHousing, a leading 19,000 home landlord in North West England. The strategic refinancing, comprising £75 million in revolving credit facilities and £140 million in term debt facilities provided by NatWest and Barclays, also includes covenant updates to provide additional financial capacity enabling ForHousing to increase investment in existing homes, as well as the delivery of 1,100 new social rent homes over the next five years.

What value did Centrus add and key benefits of the transaction?

• Enhanced Financial Capacity: Renegotiation of loan covenants, including the full removal of EBITDA MRI ICR, has boosted ForHousing’s long-term financial strength
• New Funding: New net funding of £55 million, alongside right-sizing of RCFs, will supportthe delivery of required Capex in the most cost-effective manner
• Extended Portfolio Life: Weighted average life of debt extended from 13 to 20 years, with only a marginal impact of ForHousing’s WACC
• Innovative Hedging: Implementation of a flexible hedging strategy, including ForHousing’s first standalone and loan-linked ISDA’s
• Market-Leading Funding: Secured funding from NatWest’s low margin Social Housing Fund—one of the first transactions to complete under this fund.

Centrus delivered a complete end-to-end advisory service, beginning with the design of a robust treasury strategy underpinned by detailed business planning and comprehensive stress testing, we ensured ForHousing were empowered to make the best decisions possible. Leveraging our market-leading insight and deep lender relationships, we led a highly competitive fundraising process that secured optimal terms for ForHousing, whilst our proactive approach ensured the restructured treasury position is fully aligned with ForHousing’s business strategy, maximising financial flexibility and resilience to support future growth and investment.

The housing finance team at Bevan Brittan, including Louise Leaver, Anna Clark, Louise Mookerjee, Jessica Church and Weronika Ziecina, advised ForHousing on the restatement of two facilities and the negotiation of the new social loan, as well as two new ISDAs and advice regarding refinancing mechanics, from Heads of Terms stage through to completion, to a tight timescale. The team at Bevan Brittan has been at the forefront in advising RPs on new debt products entering the market to accelerate the provision of new social housing, as well as the improvement of existing homes.

“Centrus and Bevan Brittan delivered a highly professional service, supporting the Executive Team and Board throughevery stage of the process, adding tangible value to our organisation. The transaction gives us the capacity to invest more in our existing homes and deliver 1,100 new homes over the next four years. It will ensure the continued delivery of the ForHousing Strategy, which has been created with tenants and stakeholders to ensure we are investing where it matters to our communities the most – and support our mission to provide safe, well-maintained homes and deliver customer-focused, equitable and efficient services.”

Tom Miller, Director – Centrus

“The housing finance team at Bevan Brittan, including Louise Leaver, Anna Clark, Louise Mookerjee, Jessica Church and Weronika Ziecina, advised ForHousing on the restatement of two facilities and the negotiation of the new social loan, as well as two new ISDAs and advice regarding refinancing mechanics, from Heads of Terms stage through to completion, to a tight timescale. The team at Bevan Brittan has been at the forefront in advising RPs on new debt products entering the market to accelerate the provision of new social housing as well as the improvement of existing homes.

Mark Bradshaw, Executive Director of Finance – ForHousing

“We were delighted to work with Centrus to support ForHousing with their most recent refinancing and to work on one of the first transactions under the NatWest social housing fund.”

Louise Leaver, Partner and Head of Housing Finance – Bevan Brittan

For more information, please contact Tom Miller, Director of Housing, Education & Care.

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