International law firm Trowers & Hamlins has advised on a large refinancing exercise and setup of a group treasury vehicle structure for Jigsaw Homes Group Limited. This involved the five housing associations within the group entering into all new loan agreements with six different lenders and the due diligence of over 34,000 properties.
The refinancing has allowed Jigsaw to generate additional financial capacity and streamline its covenants in order to maximise its financial capacity and build more homes. The new structure involved five housing associations in the group entering into new loan agreements with six existing lenders, and £25m in additional funds from Nationwide in a £715m overall package. These facilities are channelled through a new group treasury vehicle and security structure to allow for funds to be flexibly deployed within the group. The refinancing will allow them to grow as an organisation and continue to meet the increasing demand for affordable homes and homes for social rent in the North West and East Midlands. This structure will support not only the delivery of Jigsaw’s corporate plan in delivering 2,100 homes in the three years to March 2021, but will provide the additional capacity and ability to deliver an additional 800 units per annum thereafter.
Trowers' banking team advised on all aspects of the financing work and their real estate finance security team advised on all related property security aspects of the deal, carrying out due diligence on over 34,000 properties.
The banking team was led by partner Neil Waller with solicitor Daniel O'Brien assisting. The property security team was led by partner Melanie Comer, with associate Lauren Mason-Smith assisting. The team worked closely with Savills as treasury advisers and Jigsaw's property and finance teams.
Partner Melanie Comer, who led the property security team on the transaction commented:
“We would like to congratulate all parties involved for closing this transaction – particularly under the difficult circumstances presented by COVID-19. It has been rewarding working with Jigsaw on the refinancing of their treasury portfolio as it will contribute towards them being able to meet the ever-increasing demand for affordable homes in both the North West and the Midlands.”
