Youth Hostel Association Review Financing to Ascertain Borrowing Capacity
Centrus was engaged by YHA on a review of its business and financial capacity to ascertain the feasibility of new project work to significantly expand operations. After a review of historic performance and stability of business cash flows, current debt and hedging arrangement to identify embedded value in these facilities from YHA’s perspective and identifying debt servicing capabilities of the business, Centrus recommended funding options for the proposed new investment, in light of the commercial proposal and investment timing.
We also advised on proposed refinancing in line with current market conditions and potential covenant restrictions. A further element of our analysis was a review of the performance of different parts of the portfolio to support a separate work stream of assessing disposal and investment opportunities across the estate. The actions from this report are being undertaken to drive the proposed investment forward and have provided YHA with some clear parameters within which investment decisions can be made.