International law firm Trowers & Hamlins has advised Poplar HARCA Capital PLC on the issue of £110m 4.843 per cent secured bonds including £25m bonds issued to a private investor on previously deferred terms with the additional security provided by an uplift to a MV-ST valuation basis.
Poplar HARCA is an award winning Housing and Regeneration Community Association in East London that strives to provide homes and support to residents and help to create a place where people, communities and businesses can grow and thrive.
The transaction entailed the further issue of £110m 4.843 per cent secured bonds, adding to an existing series of bonds due 2043, to create a benchmark £250m issuance. £25m in principal amount of the new bonds were issued to a private investor pursuant to a forward purchase agreement for the sale of future issued bonds in August 2020, with the proceeds on lent to Poplar HARCA. The remaining bonds were issued to Poplar HARCA for future sale.
Trowers advised Poplar HARCA Capital PLC, as the issuer, and Poplar Housing and Regeneration Community Association on all aspects of the forward purchase arrangements, issuance and security work, including the valuation uplift to an MV-ST valuation basis. The transaction marks an increasing trend in deferred sales of listed bonds in capital markets deals for Registered Providers, this being one of a number of such transactions that the Trowers' Banking & Finance team have worked on in recent months.
Commenting on the transaction, Jonathan Spearing Finance Director of Poplar said: "I want to thank Trowers for all their help in meeting the extremely tight deadlines. It’s all worth the effort to make a difference to people who need it and the team have been amazing to get everything done in the time we had."
Dale Moulden, Senior Associate at Trowers & Hamlins, commented: "It has been fantastic to be able to help Poplar on this transaction and to see the some of the examples of the good work being done at Poplar to help those in need during these difficult times: https://www.poplarharca.co.uk/about-us/news/article/tackling-holiday-hunger-and-mental-health-one-munch-box-at-a-time/."
The Trowers team was led by Dale Moulden (Senior Associate - Banking and Finance) and head of Real Estate Finance Security, Katie Dyer, working with Jessica Church (Managing Associate – Real Estate) and Jonathan Grosvenor (Associate – Banking and Finance).