Social housing provider Gentoo has completed a £460m portfolio restructure.
The transaction sees £360m of legacy, partly syndicated debt refinanced by a 40-year £110m private placement and £350m in bank loans provided by NatWest, ABN AMRO, and HSBC.
The new facilities include £150m in revolving credit, which will boost Gentoo’s liquidity and enable the delivery of its development and stock investment programmes.
Gentoo said the new funding arrangements have helped it recalibrate covenant requirements and reporting obligations with more favourable market conventions.
Gentoo has a portfolio of over 29,000 properties, housing more than 60,000 people in Sunderland.
Gentoo executive director of finance Peter Lenehan said: “The benefits of increased liquidity, modernised security arrangements and revamped covenants and corporate freedoms combine to increase Gentoo’s ability to deliver its corporate strategy.
“This extensive restructure of our treasury portfolio strengthens Gentoo’s platform to deliver an ambitious programme of investment in its existing homes and in new affordable homes to meet the needs of the people of Sunderland.”
Gentoo was advised by Centrus.
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