TCHG secures £80m of new funding through the capital markets
Town and Country Housing (TCHG) has secured £80 million of funding to support their growth plans and enable them to continue to invest in communities in their heartland of Kent and East Sussex.
The bond is rated AA- by Standard & Poor’s, has a 31 year maturity, and fully amortises over the last 10 years of its life, and was priced at a credit spread of 135bps above the yield on the benchmark gilt.
TCHG will use around £35m of the proceeds on day one for a partial refinancing of an existing bank facility, with the remainder used to enable commitment to development of 600 new homes over the next 2-3 years.
The bond was placed with one investor, Standard Life Investments, after TCHG ran a competitive funding process. The debt was issued through a newly created treasury vehicle, TCHG Capital plc, whose shares are owned by a third party charitable trustee.
Robin Tebbutt, TCHG’s Finance Director, said: “Our first issuance in the capital markets has secured our medium term borrowing requirements by providing long-dated funds to support our future development plans to deliver affordable housing across Kent and East Sussex.”
TradeRisks acted as arranger and dealer on the issue, with K&L Gates LLP as capital market lawyers. TCHG was supported by Trowers & Hamlins LLP as legal advisers. Standard Life Investments was advised by Herbert Smith Freehills LLP.
Jon Slater, Joint Chief Executive of TradeRisks, said: “A private but competitive funding process, using public listed documentation, has enabled TCHG to borrow at attractive levels with a structure that matches their needs. Standard Life Investments is a leading asset manager with a long track record of investing in the social housing sector”.
For further information please contact Jon Slater on 020 7382 0957 or jonslater@traderisks.com