Keble College Debt structure & long term institutional financing

Transaction Overview

Keble College, which was founded in 1870 and is one of the largest of the constituent colleges of the University of Oxford closed a £30m long dated financing with an institutional investor.

The financing, which is unsecured, has a final maturity of 40 years and a fixed coupon of 3.366%. The proceeds of the borrowing will be used for development of additional student accommodation and research space at the Acland Site in the centre of Oxford.

Centrus Solution

Centrus supported Keble over a period of two years providing advice on the valuation of the Acland site, potential debt structures and engagement with potential lenders. A fixed rate unlisted note structure was chosen over a lease or index linked debt due in large part to the receipt by Keble of a £25m capital grant from the HB Allen Charitable Trust.

Centrus undertook investor contact and negotiations on behalf of Keble with selected institutional investors following which a single investor, offering the best combination of price and maturity, was chosen. A delayed drawdown was agreed with the investor at no additional cost to Keble.

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