x
_thumbnail_id: Array
author: Array
_author: Array
article_modules: Array
_article_modules: Array
modules_0_title: Array
_modules_0_title: Array
modules_0_content: Array
_modules_0_content: Array
modules: Array
_modules: Array
modules_2_download_box_download_box_title: Array
_modules_2_download_box_download_box_title: Array
modules_2_download_box_download_box_button_text: Array
_modules_2_download_box_download_box_button_text: Array
modules_2_download_box_download_box_button_url: Array
_modules_2_download_box_download_box_button_url: Array
modules_1_title: Array
_modules_1_title: Array
modules_1_content: Array
_modules_1_content: Array
modules_1_download_box_download_box_title: Array
_modules_1_download_box_download_box_title: Array
modules_1_download_box_download_box_button_text: Array
_modules_1_download_box_download_box_button_text: Array
modules_1_download_box_download_box_button_type: Array
_modules_1_download_box_download_box_button_type: Array
modules_1_download_box_download_box_button_url: Array
_modules_1_download_box_download_box_button_url: Array
modules_1_download_box: Array
_modules_1_download_box: Array
modules_2_quote_author: Array
_modules_2_quote_author: Array
modules_2_enable_tweet: Array
_modules_2_enable_tweet: Array
modules_2_quote: Array
_modules_2_quote: Array
modules_3_title: Array
_modules_3_title: Array
modules_3_content: Array
_modules_3_content: Array
modules_4_title: Array
_modules_4_title: Array
modules_4_content: Array
_modules_4_content: Array
modules_5_background_image: Array
_modules_5_background_image: Array
modules_5_video_title: Array
_modules_5_video_title: Array
modules_5_video_thumbnail_url: Array
_modules_5_video_thumbnail_url: Array
modules_5_video_url: Array
_modules_5_video_url: Array
modules_5_video_duration: Array
_modules_5_video_duration: Array
modules_5_video_description: Array
_modules_5_video_description: Array
modules_5_video_embed_code: Array
_modules_5_video_embed_code: Array
modules_6_title: Array
_modules_6_title: Array
modules_6_content: Array
_modules_6_content: Array
modules_5_image_caption: Array
_modules_5_image_caption: Array
_yoast_wpseo_content_score: Array
article_modules_1_download_box_download_box_title: Array
_article_modules_1_download_box_download_box_title: Array
article_modules_1_download_box_download_box_button_text: Array
_article_modules_1_download_box_download_box_button_text: Array
article_modules_1_download_box_download_box_button_type: Array
_article_modules_1_download_box_download_box_button_type: Array
article_modules_1_download_box_download_box_button_url: Array
_article_modules_1_download_box_download_box_button_url: Array
_yoast_wpseo_primary_category: Array
_wp_old_slug: Array
article_modules_1_title: Array
_article_modules_1_title: Array
article_modules_1_content: Array
_article_modules_1_content: Array
modules_0_module_title: Array
_modules_0_module_title: Array
modules_0_background_color: Array
_modules_0_background_color: Array
modules_0_module_type: Array
_modules_0_module_type: Array
modules_0_filter_posts_by_taxonomy: Array
_modules_0_filter_posts_by_taxonomy: Array
modules_0_filter_posts_by_tags: Array
_modules_0_filter_posts_by_tags: Array
modules_0_link_text: Array
_modules_0_link_text: Array
modules_0_link_url: Array
_modules_0_link_url: Array
article_modules_0_columns_0_number_value: Array
_article_modules_0_columns_0_number_value: Array
article_modules_0_columns_0_text_value: Array
_article_modules_0_columns_0_text_value: Array
article_modules_0_columns: Array
_article_modules_0_columns: Array
article_modules_2_title: Array
_article_modules_2_title: Array
article_modules_2_content: Array
_article_modules_2_content: Array
article_modules_0_columns_1_number_value: Array
_article_modules_0_columns_1_number_value: Array
article_modules_0_columns_1_text_value: Array
_article_modules_0_columns_1_text_value: Array
article_modules_0_columns_2_number_value: Array
_article_modules_0_columns_2_number_value: Array
article_modules_0_columns_2_text_value: Array
_article_modules_0_columns_2_text_value: Array
_dp_original: Array
_edit_lock: Array
_edit_last: Array
article_modules_3_title: Array
_article_modules_3_title: Array
article_modules_3_content: Array
_article_modules_3_content: Array
_yoast_wpseo_focuskw_text_input: Array
_yoast_wpseo_focuskw: Array
_yoast_wpseo_title: Array
_yoast_wpseo_metadesc: Array
_yoast_wpseo_linkdex: Array
page_summary: Array
_page_summary: Array
modules_1_text: Array
_modules_1_text: Array
modules_2_module_title: Array
_modules_2_module_title: Array
modules_2_background_color: Array
_modules_2_background_color: Array
modules_2_column_ratio: Array
_modules_2_column_ratio: Array
modules_2_editor_content_left: Array
_modules_2_editor_content_left: Array
modules_2_button_text_right: Array
_modules_2_button_text_right: Array
modules_2_button_type_right: Array
_modules_2_button_type_right: Array
modules_2_button_url_local_right: Array
_modules_2_button_url_local_right: Array
article_primary_tag: Array
_article_primary_tag: Array
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
Background

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
Benefits
  • 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
 

More Social Housing case studies

Case studies
£250m public bond and A+ credit rating for Incommunities
Social Housing March 2019
Case studies
£40m Private Placement funding for Howard Cottage
Social Housing March 2019
Case studies
£150m Private Placement and A+ credit rating for Octavia Housing
Social Housing February 2019

Contact us

If you need hedging or debt advice or would like to speak about how we could help your business, please get in touch.