Your Housing Group completes treasury restructure – sub 2.50% private placement
Your Housing Group finalised its first institutional Private Placements, bolstering liquidity and cementing a broader restructure of Treasury arrangements to support a ten-year growth strategy.
Warrington-based Your Housing Group is a leading provider of affordable homes across the North West, Yorkshire, and Midlands. Providing over 28,000 homes, the Group has a clear long-term strategic vision to deliver high quality homes efficiently, effectively, and innovatively.
£120m has been raised via two notes comprising four maturities with a weighted average life of c. 34 years, a coupon of c. 2.5%, and an attractive covenant package despite volatile market conditions.
The transaction follows a significant restructure of banking relationships completed in December 2019 that established a ten-year £250m Revolving Credit Facility across three core banks, removed EBITDA-MRI based interest cover covenants, and provided significant liquidity. The new funding arrangements underpin a ten-year strategy that will see significant investment into existing assets and unlock development of more than 10,000 new homes across a range of rent tenures, placing Your Housing Group in a strong position for the future.
Centrus acted as sole financial advisor to Your Housing Group, supported Treasury strategy development and implementation, and arranged the private placements. Devonshires advised on the corporate and financing aspects, including the property security elements which will underpin the new financing arrangements.
Jeremy Earnshaw, Chief Financial Officer - Your Housing Group The completion of these new facilities is an important milestone for Your Housing Group. We have a clear strategy to both invest in our existing assets, and develop at scale to deliver new homes. Delivering on our Treasury strategy in these highly uncertain times has been a real achievement for Your Housing Group, and we are looking forward to implementing the next stage of our plans
John Tattersall, Director - Centrus Your Housing Group has a very clear vision to deliver the social impact that this transaction and the underlying banking restructure unlock. The combination of this vision and strong financial metrics have been instrumental in delivering this transaction despite recent market volatility, with the coupon underlining the continued attraction of the housing sector for long term investors seeking stable and low risk investments
Press release date: 21st May 2020