Bracknell Forest Homes secures £35m new institutional funding as part of £88m debt restructuring
The 32-year fixed rate funding was placed with a single capital markets investor.
The funding was priced in November 2015 at an attractive spread, following multiple bilateral engagements with investors. Bracknell benefitted from a ‘gilt lock’ providing certainty over the all-in cost of debt whilst the documentation and security processes were completed; an important risk management feature when structured correctly.
Alongside this, Bracknell also secured a successful restructuring of its existing bank debt – increasing the size and extending the maturity of its revolving credit facility, at a significantly lower margin.
TradeRisks acted as debt arranger for Bracknell, who were supported by Trowers & Hamlins as legal advisers and Savills as valuers.
Sally Reay, Finance Director at Bracknell Forest Homes, stated: “The Association is committed to the development of much needed new homes and we are pleased to have secured this new supply of funds at a cost effective rate to support the programme. Our first engagement with the debt capital markets has been a positive experience and our restructured debt portfolio provides a stronger platform to deliver further growth”.
John Coleman, Associate Director at TradeRisks, stated: “The debt restructuring achieved by Bracknell represents a great result in the face of a challenging environment for housing associations in the UK. Bracknell benefitted from taking a competitive approach to both its bank and capital markets funding needs and will now enter this phase of development supported by an efficient funding structure”.