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Rosebery secures part-deferred private placement as part of £100m refinancing

Rosebery Housing Association has secured a private placement with M&G Investments, as part of a £100m refinancing deal.

The Epsom based landlord intends to use the £42.5m Private Placement from M&G (of which £20m was drawn up-front with a further £22.5m to be drawn in 2016) to restructure an existing facility and a new £20m revolving credit facility from Santander to fund its development programme.

The restructure removes all large scale voluntary transfer (LSVT) covenants, agreed under the original syndicated facility with RBS and Santander to support the transfer from Epsom & Ewell Borough Council in 1994. The original terms were agreed during more favourable times, ahead of the economic downturn, but they included typical stock transfer restrictions, preventing any additional borrowing along with requiring business plan approval by the lenders.

The new refinancing provides ‘considerable flexibility’ says Rosebery’s Finance Director, Lesley Hobley. ‘We worked closely with RBS and Santander to ensure that the refinancing was of mutual benefit to all parties and we look forward to our new relationship with M&G.’

Lesley added. ‘This marks a big step out of the existing facility and now also enables Rosebery to explore other funding streams, such as the Affordable Homes Guarantees Programme (AHGP).’

Darrah O’Keeffe, Director of Housing Finance at Santander Corporate & Commercial Banking said, ‘Santander has enjoyed a great relationship with Rosebery since transfer, and we are delighted to provide additional facilities to assist Rosebery with its future growth aspirations.’

Rosebery’s Chief Executive, Deborah Pike, commented on the announcement, ‘This refinancing enables us to realise our development plans and implement our growth strategy over the course of the next few years. For Rosebery, it represents a big step in the right direction.’

Mark Davie, Head of Social Housing, M&G Investments, says: ‘This financing puts Rosebery on a firm footing to carry out its business and development plans over the coming years as it continues to play an integral role in the local community.’

M&G has invested over £6bn in UK social housing through property transactions, public bonds and private placements.

Centrus is Rosebery’s funding adviser and Devonshires acts as its legal adviser.