Case Studies
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Centrus advises Orbit Group on innovative £100m Pricoa Shelf Facility

Centrus, the leading fianncial services group, has advised Orbit Group on a new financing facility with US investor, Pricoa Capital. The facility breaks new ground in terms of long term funding for Registered Providers, offering a number of attractive features, including;

  • Competitive pricing and flexibility to draw tranches on maturities between 10-25 years
  • Pre-agreed “shelf” documentation for future drawings, with pricing agreed upon drawdown
  • No cost of carry or commitment fees on undrawn shelf facility but strong likelihood of availability from a large and reputable institution
  • No FX exposure for Orbit – unlike previous private placements from US investors in sterling where the borrower carries contingent FX risk (in the event of pre-payment)

Commenting on the deal, Phil Jenkins – MD at Centrus said

This transaction represents an important step in the development of the institutional bi-lateral funding market for RPs. While this type of shelf funding arrangement differs from fully committed facilities, it does offer a flexible means of securing long terms funding at short notice. We are pleased to have assisted Orbit in developing a new bi-lateral relationship with a major institutional investor.