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North East housing association completes £460m restructure of its loan book
Sunderland housing association Gentoo has announced the completion of a “complex” £460m restructuring of its loans and finance deals.
The 29,000-home landlord has completed a transaction that will see £360m of partly syndicated debt refinanced by a £110m private placement and £350m in bank facilities provided by NatWest, ABN AMRO, and HSBC.
Gentoo said its new facilities feature “more favourable financial covenants” that are more security efficient, and will help deliver a programme of investment in its existing and in new affordable homes across Sunderland.
According to the landlord, the restructure has seen Gentoo achieve an A+ rating from Fitch Ratings.
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Financial services group Centrus worked closely with Gentoo and financial advisors Devonshires worked on the transaction, from initial strategy to completion.
Louise Bassett, interim chief executive at Gentoo, said: “The restructure of our treasury portfolio will further enable Gentoo to deliver our core purpose of providing safe, decent homes for our tenants and continue to play our part in the ongoing regeneration of the city of Sunderland.”
Peter Lenehan, executive director of finance at Gentoo, added: “We are delighted to have completed this complex project, in what has been a challenging financial environment.
“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.”
Last month, local councillors in Sunderland called for answers after Gentoo’s chief executive stepped down suddenly.
The landlord announced at the beginning of the new year that Nigel Wilson, who had been chief executive of four years, was stepping down with “immediate effect” and to be replaced on an interim basis by Ms Bassett, who was executive director of corporate services.
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