Housing Solutions secure £50m using innovative deferred funding transaction
Housing Solutions has secured £50 million of funding to support its ambitious development plans for new affordable housing over the next four years.
The debt facility has been agreed with Legal & General. The deferred funding has a 40 year maturity and is priced at a very competitive credit spread with an overall fixed rate significantly below 5%.
This highlights the strength of the Maidenhead based housing association’s business plan and management. The £50m will be drawn in four tranches between December 2014 and October 2015 and contains no corporate financial covenants.
Housing Solutions is a leading provider of affordable homes in the South East and currently owns, manages and maintains more than 8,000 homes.
Andrew Robertson, Finance and Resources Director of Housing Solutions, said: “This funding has secured our medium term financial requirements by providing long-term funding to support our plans to deliver much needed affordable housing in the South East of England.
“The deferred structure allows us to deliver future developments with the assurance that funding is available and reduces the need to rely on substantial cash balances, reducing carry costs.”
TradeRisks acted as arranger and structurer for the funding and Housing Solutions was supported by Trowers & Hamlins as legal advisers.
Jon Slater, Joint Chief Executive of TradeRisks, said: “Housing Solutions’ transaction confirms a significant evolution in the flexibility that is available to housing associations and other corporates to produce significant cost savings.
“The deferred structure offers advantages for both investors and borrowers and we are increasingly seeing appetite from investors to accommodate a more flexible draw down profile”
For further information please contact:
Jon Slater, Joint Chief Executive of TradeRisks on 020 7382 0957 or jonslater@traderisks.com