Contact

Archives: Credential

Post Type Description

Centrus arranges £50m Sustainability Linked RCF for University of London

Transaction Overview

University of London (“UoL”), is the UK’s leading provider of digital and blended distance education internationally, with 45,000 students in 190 countries.

UoL is also a federation of 17 esteemed higher education institutions, with more than 240,000 learners; collaboration is at the heart of its ethos.

Centrus supported UoL in arranging a new £50m sustainability linked 5 year revolving credit facility (RCF) with Lloyds, featuring flexible covenants and enhancing the University’s liquidity and credit risk profile.

Centrus Solution

Centrus, as corporate finance advisor to UoL, worked closely with the University through engaging with and obtaining terms from lenders to the HE sector. 

This included preparation of comprehensive materials to position the University’s credit and operating strengths. Centrus utilised its market insights to enable strong terms to be negotiated from a range of potential lenders.

A report was prepared for Committee evidencing Lloyds offer as providing the most flexible and cost effective solution, best achieving the funding objectives, while also aligning with UoL’s commitment to ESG.

Outcome

  • £50m RCF arranged, enhancing UoL’s liquidity position with flexible covenants which provide greater freedom to enable future ambitions.
  • The funding is sustainability linked (“ESG”), a new innovation for the sector, enabling UoL’s ongoing commitment to sustainability to be aligned with funding.
  • Through achieving set ESG KPIs, the University benefits from reduced funding costs, with cost savings able to directly support UoL’s students, stakeholders and broader ESG commitments.

“Centrus’ support has been invaluable, driving the best terms possible for UoL, providing assurance throughout the process, guiding us in a challenging market environment and helping us achieve this great outcome”

Rita Akushie, Pro Vice-Chancellor Finance & Operations – University of London

“We are delighted to have supported the University in arranging this facility. The new RCF further enhances UoL’s robust position, while aligning its sector leading ESG activities with the funding provided”

Sam Goldman, Director – Centrus

For more information, please contact Sam Goldman, Director at Centrus.

Centrus advises mhs on £180m bank funding and £90m in new capital markets

Transaction Overview

mhs Homes Group (“mhs”), provides over 9,500 homes in the Thames Estuary region, and is the largest independent social landlord in the UK. 

With ambitions to develop 600 new homes over the next 5 years, its mission is to help end the housing crisis in North Kent by providing safe and sustainable homes.

The transactions involved 2 new private placements for £90m, restructuring the £180m bank portfolio including £40m in new RCF funding 

Centrus Solution

  • Supported mhs from formulation of strategy, to engagement with a broad range of funders, to execution of the multiple financing transactions.
  • Given volatile market conditions, Centrus ran dual track PP and bank processes and were involved in engaging a wide range of banks and investors, employing a dynamic approach to provide clarity of the most attractive solutions, and agility to adapt if conditions changed.
  • Strong focus on project management ensured the multiple funding elements were handled efficiently while providing assurance to mhs executive and board.

Outcome

  • £90m of private placements from Legal & General Investment Management and PIC, achieving long dated fixed rate funding, extending portfolio tenor, reducing long term rate and refinancing risk
  • Restructured funding of  over £140m, providing more flexible covenants and less restrictive controls to support future development and net zero investment
  • Further £40m in new liquidity funding to further enhance resilience 
  • Ensured optimal outcome achieved, balancing cost, risk management and flexibility to drive demonstrable VfM

“Centrus’ support has been invaluable throughout the process, with ongoing assurance and advice. This has allowed us to manage the challenging market environment and achieve  these great outcomes”.

Bruce Shelmerdine, Finance Director, mhs homes group

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

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

Centrus advises Gentoo on £460m restructure of its treasury portfolio

Transaction Overview

Gentoo is a leading provider of social housing with over 29,000 properties.  They provide more than 60,000 people in Sunderland with a place they can call home.

Gentoo has had a long-standing ambition to remove the significant legacy complexity from its funding portfolio. This transaction now realises that aim.

The transaction sees £360m of legacy, AMRO, and HSBC. partly syndicated debt refinanced by a 40 year £110m private placement and £350m in bank facilities provided by NatWest, ABN  

Centrus Solution

  • Centrus supported the development of Gentoo’s treasury strategy, which was refined in response to 2022’s market turbulence to ensure best outcome was achieved.
  • We led a competitive bank process to raise £150m in new RCFs, alongside leading negotiation with existing banks.
  • Simultaneously, Centrus advised and arranged the £110m private placement – the fundraise was oversubscribed, leading to a tightly priced issuance.
  • We worked closely with Gentoo and the broader range of 12 financial stakeholders to deliver this successful outcome.

Added Benefits

The new facilities feature more favourable financial covenants and controls, are materially more security efficient, and enable delivery of Gentoo’s development and stock investment programmes. 

In addition, the harmonised facilities have helped to recalibrate covenant requirements and reporting obligations – leading to greater administrative ease for the business going forward, 

The restructure has seen Gentoo achieve an A+ rating with Fitch.

“The restructure of our treasury portfolio will further enable Gentoo to deliver our core purpose of providing safe, decent homes for our tenants and continue to play our part in the ongoing regeneration of the City of Sunderland.”

Louise Bassett, Interim Chief Executive – Gentoo

“We are delighted to have completed this complex project in what has been a challenging financial environment. The benefits of increased liquidity, modernised security arrangements and revamped covenants and corporate freedoms combine to increase Gentoo’s ability to deliver its corporate strategy. This extensive restructure of our treasury portfolio strengthens Gentoo’s platform to deliver an ambitious programme of investment in its existing homes and in new affordable homes to meet the needs of the people of Sunderland”. 

Peter Lenehan, Executive Director of Finance – Gentoo

“Gentoo has had a long-standing ambition to remove the significant legacy complexity from its funding portfolio. This transaction now realises that aim.

The transaction, which began in a stable interest rate environment, has had to navigate the challenges that 2022 brought with it. Through our close working relationship with Gentoo and the broader range of 12 financial stakeholders involved in the transaction a successful outcome has been achieved.

The restructure provides multiple benefits, including bolstered liquidity, reduced covenant risk, improved security efficiency, and an enhanced fixed floating ratio whilst retaining flexibility – all of which will support the organisation to continue investing in homes in the Sunderland region.”

John Tattersall, Senior Director – Centrus

“The deal marks the culmination of many months of planning, negotiating and implementing a bold treasury strategy against the backdrop of a variable economic environment. We’re delighted to have played our part in helping Gentoo achieve its goals and provide a robust platform on which to carry out the next exciting chapter in its evolution.”

Gary Grigor, Partner – Devonshires

For more information, please contact John Tattersall, Senior Director – Centrus

Centrus arranges £150m bank refinancing & £100m private placement for Silva

Transaction Overview

  • Silva Homes (“Silva”), owns & manages over 7,000 homes, focused on the region around Bracknell Forest. Silva is rated A+ by S&P
  • Silva has an ambitious programme to develop 1,100 new homes over the next 5 years.
  • Refinanced existing lender with 3 new facilities, totalling £150m, with maturities ranging from 5 to 15 years.
  • Silva also raised £100m 35 year private placement, including £25m 12m deferred, £25m 24m deferred.

Centrus Solution

Centrus worked closely with Silva from the formulation of refinancing & new funding strategy, to executing of new bank & PP funding.

Our team ran a multi bank and investor process allowing for wide engagement, ensuring Silva received indications from a large number of market participants and that value for money and optimal terms were received.

Centrus provided Silva with broad project management and governance support, ensuring assurance throughout the process and that outcomes achieved aligned with overarching treasury objectives.

Outcome 

  • New £150m of bank facilities from 3 lenders, more flexible financial covenants than existing, supporting long term funding, liquidity, ESG and development ambitions.
  • £100m private placement funding, for 35 years, providing long dated, low cost fixed rate funding, extending portfolio tenor, multiple deferred tranches allowing for funding to be received as and when required.
  • Overall portfolio risk reduced, tenor extended, refinancings staged over time, long term interest risk reduced, significant increase in liquidity.

“Centrus has provided high quality support in arranging these deals. Their understanding of the market, strategic guidance and project support, has been key in helping us achieve such a strong outcome and position us for the future.”

John Andrew, Finance Director – Silva Homes

“Proud to have supported Silva on these new transactions. The new funding provides a robust foundation for Silva to achieve future ambitions. Given economic headwinds & market volatility, this is a significant achievement for Silva”

Sam Goldman, Director – Centrus

For more information, please contact Sam Goldman, Director – Centrus

Centrus arranges funding for DBE Energy anaerobic digestion plant 

Overview

Centrus acted as financial advisor to the management team and key shareholder of DBE Energy Limited, an anaerobic digestion (AD) plant in Surrey, England. Centrus supported them in securing investment from a fund managed by the Sustainable Private Infrastructure team of Lazard Asset Management. This transaction represents the fund’s inaugural investment in the UK market.

DBE Energy’s state-of-the-art AD plant began receiving local food waste in January 2020 and has the capacity to process 25,000 tonnes of food waste each year to produce up to 2.3 million cubic metres of clean, green, renewable biomethane, providing energy for around 700 average sized family homes per year. 

Centrus’s role was to support DBE Energy’s shareholders in securing the right financial partner to support the next phase of their growth as the management aims to diversify revenue lines through carbon capture for the local food and beverage industry, as well as potentially consolidating the food-waste AD sector.   

Our services included: 

  • Developing the business plan and financial model in collaboration with the management team.
  • Identifying the right shareholder to pursue DBE Energy’s growth plans from a broad range of financial and strategic investors and negotiating commercial terms supporting DBE Energy shareholders.

Centrus value add: 

  • A range and depth of relationships with equity investors active across the UK and Europe.
  • Expert modelling capabilities and the ability to create a management presentation that best articulates the business plan.
  • Experience in structuring complex equity and debt financings in a broad range of sectors for businesses in various stages of growth. 

“Centrus supported throughout, actively managing the process from start to finish. The team used their specific sector knowledge and expertise in structuring complex financings to run a sale process. We are delighted with the outcome and look forward to the future in partnership with Lazard Investment Management.” 

Steve Sharratt, CEO of DBE Energy Ltd

“The AD market in the U.K., despite being one of the most advanced in Europe, is fragmented and thus creates significant potential for consolidation and growth. We are delighted to have completed this investment in DBE Energy, and together with its management team are looking forward to growing this partnership further.”

Robert Wall, Head of Sustainable Private Infrastructure – Lazard Asset Management

“It has been a pleasure working with the management and key shareholders of DBE Energy to secure a partner that will drive the future growth of the business. We look forward to continuing to work with the team and new shareholders as they grow their partnership. 

The UK anaerobic digestion market continues to be an exciting growth market and will play a significant role in enabling the UK to meet its net zero targets. Centrus has a deep understanding of the UK and European green gas space and are well versed in helping our clients meet their strategic objectives”

Terence Amako, Head of M&A and New Energies – Centrus 

For more information, please contact Terence.Amako@centrusadvisors.com

Centrus advises regulator on the financeability of Dublin Airport’s c. €2bn expansion

About The Commission for Aviation Regulation

The Commission for Aviation Regulation is an independent statutory body established by the Aviation Regulation Act 2001 and regulates certain aspects of the aviation and travel trade sectors in Ireland. The principal function of the Commission is to set the maximum level of airport charges at Dublin Airport.


Transaction Overview

Centrus undertook a review and analysis of information in relation to the preliminary price cap proposed under a draft determination published by the Commission in May 2019. The results of this review and conclusions on the financeability of DAA’s proposed €2bn expansion plan for Dublin Airport for the period 2020-2024 were provided to the Commission in a report, which was published on the Commission’s website beside its final determination on the price cap in October 2019.


Our Role

  • Centrus advised on appropriate thresholds for financial ratios and a target credit rating for Dublin Airport to enable it to access the debt markets at an efficient cost.
  • Advised on financial market conditions and general funder appetite in the sector to assist in assessing financeability.
  • Review of pricing model underpinning the price determination and scenario analysis to assess downside risks
  • Assessed S&P’s credit ratings methodology and developed an approach to assessing the credit risk of Dublin Airport’s regulated entity on a standalone basis
  • Provided advice on funder appetite for regulated infrastructure businesses and an assessment of market conditions for debt funding for issuers such as Dublin Airport
  • Provided recommendations on adjustments to the risk assignment in the final regulatory settlement to improve investor appetite.

“Centrus provided us robust, evidence based, responsive and timely analysis on Dublin Airport’s ability to finance its €2bn expansion plan. As the economic regulator of Dublin Airport, this analysis informed our final Determination of the maximum level of airport charges for 2020-2024.”


Dr Adrian Corcoran, Director of Economic Regulation – The Commission for Aviation Regulation

For more information, please contact Mark Taheny, Senior Director – Centrus

Centrus arranges additional £16m debt for St Arthur Homes to deliver affordable homes

About St Arthur Homes

St Arthur Homes is a Registered Provider of high quality, Shared Ownership homes in England.

St Arthur Homes currently has a portfolio of over 320 homes, plus significant pipeline over the coming years, working in partnership with a range of national and regional developers.

Specialising in s106 and grant led schemes between 20-150 units and prioritising high quality, energy efficient homes – the new funding will allow St Arthur Homes to continue providing new Shared Ownership homes to customers across the South East and Midlands.

Transaction Overview

St Arthur Homes has secured an additional £16m debt from funds advised by CBRE Capital Advisors to help deliver affordable homes.

Centrus acted as arranger to secure this additional stabilised funding from funds advised by CBRE Capital Advisors, having raised a total c.£60m of development and stabilised financing for St Arthur Homes over the past 12 months.

“It was a pleasure working closely with the Centrus and CBRE teams to deliver this portfolio refinancing covering a portion of our stabilised Shared Ownership stock. The refinancing allows us to continue our growth story of delivering fantastic affordable new build homes to our customers. Many thanks to all involved in the lengthy process in securing this raise and ensuring best Value for Money was secured in a viable manner.”

Costa Ghioules, CFO – St Arthur Homes

“We are delighted to have supported the team at St Arthur Homes again to arrange this additional funding from CBRE. We have been working with St Arthur Homes for the past 2 years and have now arranged c.£60m of debt facilities to help support the development and supply of new shared ownership homes. We look forward to working with the team to continue to support their growth aspirations over the coming years, which will see the portfolio grow significantly to help meet the significant demand for affordable homes in England.”

Scott Douglas, Assistant Director – Centrus

“This is our third loan facility with St Arthur and the first in the stabilised investment space. It has been fantastic watching the business go from strength to strength and we have very much enjoyed working with the Centrus and St Arthur teams again. We see Shared Ownership housing as being of vital importance to the UK housing market and are delighted to have advised a longstanding pension fund client on this debt investment.”

Nick Griffiths, Director – CBRE Capital Advisors

For more information, please contact Scott Douglas, Assistant Director – Centrus

Dragon School becomes the first UK Prep to raise private finance

Transaction Overview 

The Dragon School (“the Dragon”) has successfully raised a £30m debt Private Placement with a maturity of 28 years. The proceeds will be used to repay existing loans, as well as to finance new capital projects including its Net Zero Strategy and improvements to school facilities.

The Dragon School

Founded in 1877, the Dragon which is located in Oxford is widely regarded as one of the leading preparatory schools in the UK.

This is the first private placement for a Preparatory school in the UK.

Our Role 

Centrus acted as financial advisor to the Dragon, drafting a detailed information memorandum and an investor presentation which were shared with a select group of institutional investors. One investor was selected and terms negotiated to achieve the optimal result for the Dragon.

“We are all delighted with the outcome which will enable the Dragon to invest in its strategic ambitions with confidence, and know that we couldn’t have got there without Centrus’ stewardship, advice and guidance along the way.”

Martin Johnson, Chief Operating Officer – Dragon School

“Investors were impressed with the Dragon’s history, scale and track record as well as the quality of its executive and governors. We were delighted to have been appointed to arrange long term finance for the Dragon and the timing of the transaction has proved to be opportune.”

Robert St John – Centrus

For more information, please contact robert.stjohn@centrusadvisors.com