LSVT refinancing for RedKite
Case studies

LSVT refinancing for RedKite

£1m Over £1m in interest cost savings per annum
£60m £60m debut private placement, split across three tranches
£20m £20m deferred monies for 12 months

RedKite signed a syndicated facility in 2012 with expensive margins and LSVT-style covenants.

The aim of the refinancing was to:

  • Remove restrictive covenants
  • Reduce the cost of funding
  • take advantage of the current low long-dated interest levels
  • Facilitate a value-enhancing development programme
  • Obtain approval to form new group structure

Our role in the process was to advise on the funding strategy, negotiate with lenders and investors and support the decision-making process of the Red Kite’s  Board

Our Approach
  • Conducted a number of evening sessions for the Board to talk them through the refinancing strategy
  • Provided training and negotiation tactics for when Red Kite met with syndicate lenders
  • Interviewed potential arranger banks
  • Oversaw the pricing and sale of the bonds
  • Managed potential risks after pricing
  • Removal of all LSVT-style restrictions
  • Bespoke funding agreement to suit the needs of Red Kite
  • £60m Private Placement – with 1-year deferral
  • Substantial reduction in the annual interest bill (£1m saving p.a.)
  • Negotiated settlement of swap break costs
  • New banking facilities – RCF and Term Loan
  • Refinanced Syndicate lenders
  • Reduced suite of financial covenants

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