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Centrus enhances Capital Letters’ financial business plan model, providing Board reporting and assurance​

Engagement Overview

The Capital Letters (CL) mission is to respond to, and address London’s homelessness crisis. Since 2019, CL has procured nearly 6,500 properties for those in need.​

Centrus was engaged to assess and refine CL’s business planning model. This involved reviewing the appropriateness of existing assumptions and integrating additional functionalities to improve accuracy.​

Once the model was refined, Centrus presented an overview of the business plan including the appropriateness of assumptions and conclusions drawn from the plan to CL’s Board. This provided CL’s Board with both confidence and assurance that the plan was based on Informed assumptions and driven by a best-in-class model.​


Centrus’ Solution and Value Add

  • Modelling Expertise: enabled challenge and real assurance on technical aspects underpinning the review. Centrus assessed CL’s model, running checks to understand model functionality, accuracy and the appropriateness of the assumptions. Our team then refined the model, updating it to include integrated financial statements and stress testing capability.​
  • Governance Support and Clear Reporting: ensured a very broad range of stakeholders could engage, debate and be assured by the process and plan outputs. This was a real value-add to strategic decision-making.​
  • Holistic Service: Centrus was able to straddle both the technical and strategic aspects of the project to offer comprehensive advice.​

“We are extremely pleased with the business planning and assurance work completed by Centrus. They leveraged their sector expertise to provide a comprehensive assessment of Capital Letters’ business plan, complete with stress testing, mitigation planning, and assurance on planning assumptions to leave us assured that our business can continue to grow on a strong foundation.​

Centrus also presented their findings to our Board and ensured the proposal was clearly understood by all. Throughout this process the team have gone above and beyond and been invaluable support in our latest endeavours.”​

Sue Edmonds​, CEO – Capital Letters​

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

Centrus advises Associated British Ports on c.£176m swap restructuring


About Associated British Ports

Associated British Ports (“ABP”) owns and operates 21 ports in the United Kingdom, managing around 25 per cent of the UK’s sea-borne trade. As a vital part of the supply chains of businesses throughout the UK, the 21 ports support 200,000 jobs and contribute £15 billion to the economy every year, handling £157 billion of trade.


Transaction Overview

In April 2024, Centrus supported ABP with successful restructuring a portfolio of c.£176m swaps, as part of a continued optimisation of the company’s long-term hedging strategy. 

The transaction follows on from a similar exercise undertaken in late 2023 for a portfolio of £300m swaps. 

Restructuring the hedging portfolio in the elevated rates environment allowed ABP to fully remove a large proportion of swap break provisions at competitive pricing levels, and aligned the hedging portfolio with future funding plans.

Since 2017, Centrus has advised ABP on over £2bn notional of hedging transactions, and we are proud to support ABP as an extension of their treasury team.


Centrus Solution

Centrus advised ABP throughout the process, coordinating a wide ranging RfP process with the company’s bank hedge counterparties. Centrus’ market insight on the products, solutions and counterparties available to ABP helped drive through a successful restructure amidst a backdrop of significant interest rate volatility, providing independent assessment of hedging alternatives and co-ordinating strong support from ABP’s relationship banking group. 

“Centrus supported us through a successful swap restructuring in which we are pleased to have achieved our risk management objectives under a continued backdrop of interest rate volatility. Centrus added value in creating a hedging strategy supported by thorough analysis, market expertise and execution support, which all facilitated a smooth transaction process which received strong support from our hedging bank counterparties. As our long-time advisor, we look forward to working with the Centrus team as we continue to optimise our long-term hedging strategy.”

Shaun Kennedy, Group Treasurer at Associated British Ports.

For more information please contact Adrian Li, Managing Director; Ivan McKinlay, Assistant Director; Ewen Alexander, Associate at Centrus.

Centrus advises Tai Tarian on raising £95m of new bank and capital markets funding 

Centrus advises Tai Tarian on raising £95m of new bank and capital markets funding to enable full refinance of existing debt, achieving a very substantial NPV saving on future financing costs 


Transaction Overview

  • Tai Tarian is one of the largest social landlords in Wales, with 9,000+ properties across Neath Port Talbot. Established in 2011 by large scale voluntary transfer (“LSVT”) from the local authority.  
  • Existing syndicated bank finance reflected these LSVT roots and timing of this initial funding but no longer met the needs of a mature organisation with significant investment and growth aspirations. 
  • Centrus undertook thorough analysis to establish the case for refinance, devised the treasury strategy and, once Board approved, was then engaged to lead on implementation.  


Centrus Solution

  • Comprehensive treasury strategy formulation which evidenced the business case for refinancing. 
  • Full market engagement with prospective bank and private placement funders, driving competition & optimising terms.
  • Refinement of strategy to reflect terms received and enable funder selection, determining the most suitable combination of bank and capital markets funding to provide interest cost management and flexibility. 
  • Combination resulted in two new bank funders (RCF & Medium Term Loan) and one new long term private placement investor. 


Added Benefits

  • New relationships established with three funders, on terms reflective of Tai Tarian’s high credit quality. 
  • Achieved NPV saving in excess of £6m, through optimising the terms and funding structure. 
  • Covenants and controls relaxed, enabling Tai Tarian to operate with maximum flexibility. 
  • Centrus led throughout working closely with Tai Tarian and its other professional advisors to deliver a complex transaction.
  • Regular reporting to Executive, Task & Finish Group, and Board to ensure fully empowered and able to exercise effective governance.

“When we commissioned this work, I hadn’t appreciated just how hands on you would be on a day-to-day basis but I can now see that this is where the magic really happens and where the value is derived.  It is so much more than ensuring that we get the best rate. I am so grateful for Centrus advice, support, trouble shooting, arm twisting and solutionising throughout this process. We would not have achieved the outcomes without Centrus. In the context of these reflections the Board requested that we feedback their gratitude to the Centrus team.”


Nick Tagg, Director of Finance – Tai Tarian 

“It’s been an absolute pleasure to work with Linda, Nick and the Board to deliver this refinancing and establish a treasury platform reflective of a 1st class organisation with sustainability and tenant services at its heart. The case for refinancing was compelling but working together we achieved really excellent outcomes, driving down the cost of financing while ensuring operational headroom and flexibility is maximised. The future looks very bright for Tai Tarian” 

Paul Stevens, Executive Director – Centrus

For more information, please contact Paul Stevens.

Centrus advises UK Power Networks Services on the acquisition of United Utilities on-site generation portfolio from SDCL Energy Efficiency Income Trust PLC

Transaction Overview

  • UK Power Networks Services, the private networks business of UK Power Networks Group, acquired a portfolio of solar, wind and hydro renewable assets comprising 69 MW of renewable generation assets across 70 sites from SDCL Energy Efficiency Income Trust PLC (“SEEIT”).
  • The portfolio has a long-term PPA with United Utilities for onsite consumption as well as an export PPA arrangement for excess generation.
  • UK Power Networks Services has a long history of successfully managing large asset portfolios for clients with critical national infrastructure. They are active in the water and renewables sector and see this portfolio as a natural fit with their existing portfolio.


Centrus’ Role

Centrus arranged a bilateral transaction between UK Power Networks Services and SDCL, acting as financial advisor to UK Power Networks Services.

The UK Power Networks Group and Centrus have a long-standing relationship and Centrus has advised them across a range of financing transactions. Centrus’ role included:

  • Identifying strategic acquisition opportunities for UK Power Networks Services and arranging a bilateral transaction with SEEIT.
  • Developing a robust bespoke renewables portfolio financial model which underpinned the valuation to achieve a transaction structure and price that brought the parties together.
  • Supporting commercial negotiations from drafting of NBO to financial close.
  • Supporting with coordination of stakeholders and the due diligence process towards a successful close in an efficient and timely manner.

“Our vision is to deliver sustainable, reliable energy and we see this renewables portfolio as a natural fit. Our long-term objective is to grow our technology and geographic footprint in the renewables sector.

Centrus supported us in identifying the opportunity to invest in this strategic asset portfolio which supports the growth of our client led electrical services business in the North of England. 

We have been building our capacity in this sector in recent years and recently delivered one of the largest solar car ports in the UK. This acquisition has been carefully negotiated to achieve a good price and is another example of us investing in large portfolios of key renewable UK assets.” 

David Mitchell, Director – UK Power Networks Services

“We are delighted to support UK Power Networks Services on this strategic renewable energy investment and to have brought the two parties together for this bilateral transaction. This represents a significant step on our journey to expand Centrus’s position in the renewables market – connecting strategic utility clients and their liquidity to opportunities with major asset owners.”

Adam MacDonald, Managing Director – Centrus

For more information, please contact Adam MacDonald, Managing Director at Centrus.

Centrus arranges £75m sustainability-linked term facility for VIVID


About VIVID

VIVID is a leading provider of affordable homes and manages 35,000 homes for 74,000 people across Hampshire, Surrey, Berkshire and West Sussex. In 2022-23 VIVID built 1,390 new homes, making them the sixth largest developer of new homes amongst housing associations in England.


Transaction Overview

In March 2024, Centrus arranged VIVID’s new £75m Sustainability Linked 10-year term facility from Nationwide. The loan has KPIs embedded within it which reinforce VIVID’s commitment to meeting housing need in a sustainable way.  These metrics include maintaining VIVID’s recently reconfirmed G1 regulatory rating and setting stretching goals for VIVID’s tenancy support team.


Centrus’ Solution

Centrus advised VIVID throughout the process, identifying Banking partners who both align with VIVID’s goals and ambitions in the sector, and who can provide the breadth, relationship and competitive terms VIVID require to secure their future growth. The medium dated term facility from Nationwide was an excellent fit for VIVID’s needs.

Access to this new funding is complementary to VIVID’s existing debt portfolio and provides medium-term security and balance, with attractive pricing secured even at a time of volatile rates. The funds will support VIVID’s mission to continue to create energy efficient homes and environments that have their customers at the heart.

“This loan is the perfect complement to our existing debt portfolio sitting between short-term RCF funding and longer-term bond debt. The facility is tightly priced and reinforces stretching ESG targets for us to deliver sustainable housing. We continue to be pleased with the support from the team at Centrus, in particular the insights and expertise they bring in identifying funding partners capable of providing the flexibility, pricing and breadth of products we need to advance our growth and de-carbonisation journey.”

Jonathan Roberts, Group Treasurer – VIVID

“We are pleased to have arranged this new ESG linked facility between VIVID and Nationwide which will fund new energy efficient homes and improvements to existing homes. The new funding benefits from a very competitive margin and takes advantage of the inversion between SONIA swap rates and gilt yields to deliver an attractive all-in cost for today’s market.”

Tom Archer, Assistant Director – Centrus

For more information, please contact Tom Archer.

Jigsaw implements titanTreasury

Challenges

Jigsaw Homes Group was looking for a solution to help the team transition away from legacy spreadsheets and move to a single point-of-truth solution to help with the daily management of complex debt structures.

The group’s debt portfolio comprises external bank debts containing embedded fixed rates, variable rates and bonds.

Jigsaw required an integrated TMS that would help with a flexible workflow process, calculate cashflow forecast, cost of debts and accounting accruals. It was important to have a bespoke solution that would help the users achieve more efficient reporting


Centrus Solution

titanTreasury is an expert Treasury and Risk Management System (TMS) that offers finance departments and treasurers the best functionalities for monitoring and controlling operational market risk (rate, foreign exchange, commodities), credit and liquidity risks.

Centrus worked closely with Jigsaw throughout the implementation, providing the team with training and support to use titanTreasury comfortably.

titanTreasury provides accuracy in calculating interest amounts and ensures that payments are made on the exact dates. 


Value Added

titanTreasury benefits: 

  • Immediate access to treasury committee reports and accounting reports. 
  • Control of cash payments. 
  • Clear view of debt maturity ladder.
  • Access to a compliance diary to track covenants review.

With streamlined financial operations, the Jigsaw team is better able to focus on its target of solving the housing crisis in the North West and East Midlands regions. 

“The process of getting the detail of all our debt into titan was made as easy as possible for us.  The training we received was tailored to our requirements.”

Mark Wood, Head of Treasury – Jigsaw

“Use of the system should remove a lot of manual processes and checking, particularly at month and quarter ends, improving internal efficiencies.”

Karl Hearfield, Assistant Director of Treasury and Development – Jigsaw

Centrus arranges two private placement shelf facilities totalling £150m for Anchor

Transaction Overview

Anchor, England’s largest not-for-profit provider of housing and care for people in later life, has secured two new private placement shelf facilities totalling £150m from LGIM and Sun Life. The LGIM facility totals £100m and Sun Life facility totals £50m. £25m in aggregate was drawn at completion of the facilities with the remaining £125m available for general corporate purposes, including the development of additional homes, over the coming years.  

Anchor manages almost 55,000 homes for both rent and sale to those aged 55 and over, serving more than 65,000 residents. Anchor is looking to grow the number of energy efficient homes it provides through development and care home acquisition. Through its development programme, Anchor anticipates delivering an average of at least 500 homes a year over a rolling 10-year period in addition to growing the number of homes for people in residential care.


Centrus’ Role

  • Centrus acted as financial advisor and arranger on the transactions, working closely with Anchor from the formulation of refinancing and funding strategy, to executing of PP funding. 
  • Our team ran a wide investor marketing process allowing for targeted engagement while ensuring that the optimal terms were negotiated and received.
  • Centrus provided Anchor with broad project management and governance support, ensuring assurance throughout the process and that outcomes achieved aligned with overarching treasury objectives.

“These facilities will help us to continue to increase our provision of affordable and energy-efficient homes for people in later life. We anticipate ongoing strong demand as, with an ageing society, the need for such properties has never been greater.” 

Amanda Holgate, Chief Financial Officer – Anchor

“We are delighted to have supported Anchor by arranging these £150m facilities from Legal & General Investment Management and Sun Life Capital Management. This transaction provides diversification to Anchor’s already significant financing base and allows them to quickly access additional long-dated capital markets funding at short notice, helping deliver more high-quality, energy efficient homes for those in later life.” 

Scott Douglas, Director – Capital Markets at Centrus

For more information, please contact Scott Douglas.

Centrus restructures and arranges new funding for Jigsaw Homes

Transaction Overview

Centrus successfully supported Jigsaw Homes Group in obtaining new funding and optimising its treasury portfolio, unlocking significant capacity to deliver new homes.



Centrus was appointed as Jigsaw’s retained treasury advisor in April 2023, marking the beginning of a strategic partnership aimed at further optimising Jigsaw’s treasury operations.

Starting with a comprehensive treasury strategy review, the work focused on renewing Revolving Credit Facilities (RCFs), funding Jigsaw’s development programme and optimising and harmonising covenants and controls. Centrus’ approach involved a thorough examination of all treasury aspects including funding and liquidity, benchmarking, and credit rating analysis. 

“The report demonstrated an understanding of our financial and treasury landscape and while our treasury portfolio was already robust and well managed, Centrus broughta clear delivery pathway, which has allowed us to obtain the new facilities we needed while optimising our portfolio.”

Rosie Marsh, Operations Director – Finance at Jigsaw Homes Group

Centrus devised a lender engagement plan and fronted negotiations with both bank and capital market lenders. By leading the discussions, Centrus deployed its extensive insights gained from past transactions, having arranged, or restructured over £6bn of bank debt for its housing clients in the past 24 months alone. This expertise ensured the complex financial negotiations were carefully navigated and that the resulting transaction not only met, but exceeded Jigsaw’s key objectives.


Transaction Outcome

The result of negotiation and strategic review between Jigsaw and Centrus was a significant transaction that included:

  1. Increased RCFs totalling £103m with three lenders.
  2. A new £50m private placement to support Jigsaw’s ambition to develop 4,000 new homes in the next five years.
  3. Restructuring c.£700m of existing bank and private placement debt to better improve and harmonise covenants, thereby increasing capacity and reducing treasury risks.

All this was achieved while increasing the tenor of Jigsaw’s liquidity facilities and lowering their average interest margin and non-utilisation fees.

Throughout the process, which was supported by law firm Devonshires, Centrus maintained transparent communication, offering regular reporting to the Board to keep them informed and engaged. Additionally, Centrus provided comprehensive transaction execution support, ensuring an efficient and well-run process.

“Working with Jigsaw has been an exciting and rewarding project already. Our combination of innovation and experience allowed us to confidently meet – and surpass – Jigsaw’s objectives for its treasury operations, ensuring it could focus on what it does best; creating homes and building lives.”

“Jigsaw’s decision to appoint Centrus as its retained treasury advisor underscores our reputation as a trusted partner in the housing sector. The collaboration demonstrates Centrus’ expertise in navigating complex financial landscapes and delivering tangible results for our clients”.

John Tattersall, Managing Director – Centrus

“I’m proud to have supported and advised Jigsaw through this significant restructure and am extremely pleased with the outcomes we have achieved together. It has been rewarding to collaborate with Jigsaw on this journey to agree solutions, and to see these through to execution and implementation”

“We are looking forward to supporting Jigsaw in the future as they continue to deliver on their ambitious strategy, and this result sees them enter 2024 with strong liquidity and a diverse lender base to support their development goals”.

Tom Archer, Assistant Director – Centrus.

“As we continue with our plans to help tackle the current shortage of new affordable housing, this partnership approach helps us take another step forward in our commitment to deliver 4,000 homes over the next five years, as well as investing in projects and assets that increase life opportunities for our residents. We are ready to continue to develop our position from this strong footing.”

Paul Chisnell, Executive Director of Finance – Jigsaw Homes Group

For more information, please contact John Tattersall

Centrus advises firmus energy in securing £285m financing package

Transaction Overview

Centrus advised firmus energy (“firmus” or the “Business”) in securing a new financing package to refinance existing debt and provide additional financing for their network expansion and energy transition strategy which includes the injection of locally produced biomethane into the gas grid.

The facilities totalling £285m included a £195m term loan, £75m capex facility and a £15m RCF. 


Background

firmus, a core infrastructure asset, is one of three gas distribution operators in Northern Ireland. The Business is owned by funds managed by Equitix, a leading global investor, developer and long-term fund manager of core infrastructure.

firmus’s network is constructed from low maintenance polyethylene (PE) pipes, capable of transporting low carbon fuel alternatives including biomethane and hydrogen. The Business also operates a gas retail business (firmus energy supply), which is the largest gas supply business in Northern Ireland by consumption, providing essential energy solutions to a wide range of customers, including domestic, commercial, and industrial clients.


Centrus’ Role 

Centrus were appointed as financial and hedging advisor to firmus in the refinancing of the company’s debt facilities. 

The transaction leveraged Centrus’ understanding of the regulated utilities market to engage an appropriate pool of prospective lenders, which led to a to a highly competitive pricing package relative to the regulators allowance.

Credit Agricole Corporate and Investment Bank, DekaBank Deutsche Girozentrale, Ulster Bank Limited and Landesbank Hessen-Thuringen Girozentrale were appointed as arrangers, and National Westminister Bank Plc as agent and Security agent.

The refinancing process included a range of detailed workstreams, including:

  • Articulating the credit story and engagement with lenders
  • Complex structuring and valuation analysis
  • Full documentation negotiations
  • Hedge structuring


Added Value 

  • firmus has achieved long-term financing at a highly competitive margin, which has helped increase profitability and optimise performance vs. the regulators cost of debt in the GD23 period.
  • Centrus competed the institutional market alongside the banking market in order to drive the right tenor and price.

“Centrus advised us through each stage of the refinancing. They became a seamless and valuable extension of our team through this process. Their analysis, and in depth understanding of the lenders in the market allowed us to achieve the optimal financing solution for our business. In addition their ability to communicate the options available to both the management team, shareholders and other stakeholders allowed firmus to optimise performance against the regulatory allowance for our GD23 debt raise. We are pleased with the outcome of this financing process and Centrus’s support and contribution throughout”

Denise Curran, FD – firmus Energy 

“firmus energy, supported by funds managed by Equitix, has successfully completed the refinancing of its group debt facilities. These new debt facilities will continue to support the ongoing investment in the gas network and in energy customers across Northern Ireland, as the company delivers its’ GD23 price control business plan and supports the Northern Ireland energy transition with the injection of locally produced, renewable biomethane into the gas grid. We enjoyed working with Centrus, who did a good job of guiding us through the process and ensuring firmus obtained the financing package required to achieve our future growth plans””

Niall Martindale, CEO – firmus energy

“Centrus is delighted to have supported firmus energy and Equitix in structuring and arranging £285m of competitive new debt facilities. This funding package refinances existing debt facilities and provides additional financing for network expansion which will enable the continued rollout of natural gas and biomethane in Northern Ireland, a key cornerstone of the energy transition strategy.”

Geoff Knight, Managing Director – Centrus

For more information, please contact our team.