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Linc Cymru secures £95m new funding package
Case studies

Linc Cymru secures £95m new funding package

Background
  • Linc is a long-standing, Cardiff-based housing association with over 4,400 homes
  • It has ambitions to deliver a further 1,700 homes across South Wales over the next ten years
  • Linc was constrained by a cumbersome debt portfolio with restrictive financial covenants and nine different funders
  • Linc also required additional funding over the next two years
Our Approach

JCRA worked closely with Linc over a period of 18 months, which included:

  • An internal review of Linc’s development capacity, outside of its debt portfolio restrictions
  • Formulating a funding strategy to move Linc to a modernised covenant suite and secure additional finance
  • Supporting Linc through negotiations with existing funders
  • Securing a new £20m revolving credit facility with a new bank lender
  • Providing advice during the execution of Linc’s £75m private placement
Benefits
  • A simplified debt portfolio, with a standardised covenant suite and significant increase of development capacity
  • Reduced pricing on some existing bank facilities
  • A new, cost-effective revolving loan facility with a new lender to the South Wales HA sector
  • A £75m private placement, split across two institutional investors, including a new investor to the Welsh HA sector
  • Structured across three tranches, including a proportion of deferred funding of up to 13 months – to align with Linc’s business plan and effectively manage its cost of carry
 

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