International law firm Trowers & Hamlins has advised Karbon Homes, one of the North East’s largest housing providers, on their £250 million bond issue.
The firm advised Karbon on the structure and documentation of the issue, including carrying out full due diligence in order to provide certificates of title for over 1,000 properties.
The transaction was structured by way of a direct issue of bonds and Karbon retained £100 million of the bonds for future issue. The bonds were oversubscribed by five times and the pricing achieved (153 basis points above the reference gilt) was significantly more competitive than anticipated. The bond proceeds will be used to refinance some of Karbon's existing bank lending and to deliver its ambitious strategy which includes the expansion of its build programme to develop at least 500 high quality new homes every year and the continued investment in its existing homes.
Trowers also advised on the funding arrangements underpinning the creation of Karbon Homes, formed by way of a merger of three North East housing associations in April 2017 and on a new credit facility with one of their lenders which completed earlier in the year.
Partner Neil Waller, who led on the deal said:
"We are delighted to have played our part in achieving this fantastic result for Karbon, which represents a significant milestone in delivering their financing strategy."
Andrew Thompson, Assistant Director Treasury at Karbon Homes added:
"On behalf of the whole team at Karbon, many thanks to Trowers & Hamlins for the expertise and sound advice provided to us during the project."