Top 40 law firm Trowers & Hamlins advised Peabody Group on its recent £450 million bond, the Group's third bond issue in debt capital markets, attracting strong interest from investors.
£100m of the bonds have been retained for future sale with security for the total amount being provided upfront. This strategy provides added flexibility on sale timing in the future.
Partner Eleanor James and senior associate Simon Valner advised on banking aspects of the issue, with property charging work led by partner Melanie Comer.
Eleanor James commented:
"We were delighted to have worked on this deal, which is particularly notable as Peabody's third issue of public bonds. It was especially rewarding to be able to incorporate expertise from different parts of the business, and we look forward to working with Peabody on future projects at this exciting time for the Group."
Chief Financial Officer, Susan Hickey, added:
“Our plans to help tackle London’s housing crisis, and significant investment in the regeneration of Thamesmead, depend on our financial strength. So this successful issuance is good news.
We are pleased there was a very strong appetite to invest in Peabody, with the order book reaching around £800m. The strong demand at a good price enabled us to take an initial £350m, which was at the high end of our plans.”
The successful issue follows the merger of Peabody with subsidiaries Family Mosaic and Gallions Housing in March. Trowers advised Peabody on the refinancing of 17 legacy loan agreements into nine new facilities required to achieve the group consolidation and undertook associated property security work on an estimated 22,000 units.
