Winckworth Sherwood’s specialist Housing Finance team has advised BAE Systems Pension Funds Investment Management Limited (BAPFIM) on the structuring, charging and documentation of two private placements by two Welsh housing associations: a £30m private placement by Mid-Wales Housing Association (Mid-Wales) and a £50m private placement by Grŵp Cynefin (Cynefin).
Both private placements completed in January, and both can be drawn and secured in several tranches on pre-agreed dates over a number of years, with the interest rate fixed in advance. The first tranche of notes issued by Cynefin, totalling £30m, included agreeing completion mechanics for refinancing existing security held by four existing funders with a same-day recharge to the purchasers of the notes, being pension funds managed by BAPFIM.
David Tolson Partnership acted as financial advisers to Mid-Wales, whilst Centrus were financial advisers to Cynefin.
Yanghui Ren, Assistant Portfolio Manager at BAPFIM, said: “We are delighted to have completed these two private placements in quick succession and with Winckworth Sherwood’s assistance and support. These transactions demonstrate our continued commitment to the social housing sector, and our ability to offer flexible drawdowns to cater to Registered Providers’ business plans.”
Louise Leaver, Partner and Head of Housing Finance at Winckworth Sherwood, said: “We were very pleased to act for BAPFIM on these two transactions. Private placements can be a good way for Registered Providers to access the capital markets and can include, in Cynefin’s case, the opportunity to refinance a large amount of existing debt. It can be challenging to simultaneously release security for several funders and recharge the same properties to another funder, but by working collaboratively we were able to agree an approach that worked for all stakeholders.”