x
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
Linc Cymru secures £95m new funding package
Social Housing December 2018
Case studies
Newlon raises £135m from private placement market
Social Housing November 2018
Case studies
RP raises £80m from two bank lenders
Social Housing November 2018

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.