Long-term, low-cost and flexible funding for Uppingham School
Background
- Uppingham School was looking to secure long-term funding to invest in future expansion, as well as refinance existing short dated bank facilities
- JCRA worked with Uppingham to develop a strategy to best suit its funding needs and enable flexibility for future development
- Advised the school that pursuing a private placement as a funding option would enable it to achieve its goals of low-cost and flexible
Our Approach
- Worked closely with school’s management to develop an effective and clear marketing document, that set out the school’s strengths and strategic vision
- Prepped the school’s presenters in the delivery of its credit strength and strategy to investors
- Created a teaser campaign to a number of investors to identify interest
- Managed a successful investor roadshow that enabled negotiations to achieve better terms than originally offered
- Appointed lawyers and stayed involved in the process to ensure that the deal remained unsecured
- Negotiated breakage of existing fixed rate facility
Benefits
- The strong presentation of Uppingham’s business case enabled the achievement of extremely well priced long-term funding at 115 bps, lower than the schools previous cost of funding
- Long-term (31 years) and a flexible funding structure with two delayed drawdowns and an amortisation profile, that enabled the school to access funding as and when required, as well as a repayment profile that matched its business plan
- Lightly covenanted and unsecured deal retaining capacity for the school to raise further funding in the future and pursue future commercial ventures
- Negotiations with banks enabled a 14% discount on breaking the swap on the refinanced fixed rate bank facility
