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Audley Retirement Syndicated Revolving Credit Facility
Case studies

Audley Retirement Syndicated Revolving Credit Facility

£125m requirement for funding identified
£100m First £100m+ RCF provided to this sector
Background
  • Audley Retirement (Audley) is a luxury retirement village owner, operator and developer with 19 village locations around the UK.
  • Audley have an ongoing development programme which will see the company greatly expand the number of sites in its portfolio over the coming 5 years. Flexible debt financing was essential to allow the company to complete its pipeline and provide ongoing capital.
  • JCRA, along with Audley identified a £125 million requirement for funding, in the form of a revolving credit facility, which would allow the debt balance to fluctuate in step with sales income and also development costs.
  • JCRA was mandated to obtain debt funding in a sector that is relatively unknown to lenders – particularly when considering the scale of the request and the type of funding required.
Our Approach
  • JCRA and Audley built a cashflow model and worked closely together to identify the key features required for this financing in order to allow Audley to follow through on its business plan.
  • We prepared all the necessary documentation and analysis to present our request for finance to prospective lenders, and then worked alongside them to explain some of the more complicated features of the request.
  • JCRA worked with multiple lending partners to bring together various offers of lending and formulate a syndicate of lenders able to commit to a common funding structure.
  • We advised Audley on the most suitable combination of lenders to achieve the best funding structure for Audley and then negotiated with those lenders to agree a common set of terms.
  • JCRA then worked with the lenders to achieve full credit approval and assist through the documentation and DD process.
Benefits
  • Achieved a well-rounded, ongoing funding package for Audley.
  • Bespoke covenant suite that JCRA refined – ticking the boxes both for our client in terms of functionality and practical use, and the lenders in terms of managing their risk exposure.
  • Competitive pricing – including an improved margin on refinance of existing lending.
  • A first for the sector on such a scale – first £100m+ RCF provided to the luxury retirement village sector.
  • An effective hedging strategy – drastically reducingthe interest rate exposure Audley will encounter throughout the term of the loan.
 

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