One Housing Group (OHG)
One Housing Group (OHG) has restructured almost £250m of funding in order to cash in on the low rates resulting from the EU referendum turmoil.
OHG fixed £50m of loans at historically low rates, restructured £79m of ‘callable’ swap deals and agreed to remove the lender option on £110m of lender option borrower option (LOBO) loans.
Paul Rickard, finance director at the group, said the deals allowed the landlord to “lock in” the low rates resulting from market turbulence post-referendum and would save a “substantial” amount of cash over the course of the loans.
The £50m of debt was fixed for five years at just 0.34%, which was 0.14% below the ‘libor’ rate of inter-bank lending.
OHG also restructured five cancellable swaps totaling £79m by removing the banks’ option to cancel the swaps at their option. Whilst there was a cost associated with the restructure, this cost was at an historic low.
Centrus advised OHG throughout this process, from a hedging strategy analysis & profile review, to supporting the Board approval submissions and assisting the execution of the deals. OHG is one of the several Centrus clients which recently completed restructures or topped up their hedging ratios in light of historically favourable market conditions.