North East housing firm Bernicia has boosted its financial strength by securing better terms on two loans totalling £60m.
The social landlord has renegotiated terms of its specialist business loans, which Bernicia says means it can free up more finance to continue to support tenants and communities during the cost of living crisis. Bernicia worked with corporate financial advisors Centrus to secure the new revolving credit facilities.
Janette Longstaff, Bernicia executive director finance, said: “We are delighted to have worked with Centrus on the arrangement of two new RCF facilities. The improved commercial terms have allowed onerous covenants to be removed, thereby further strengthening Bernicia’s financial position.
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“This will strengthen the company’s on-going liquidity levels at improved rates and terms, ensuring that Bernicia’s financial capacity can be used not only to deliver on the objectives contained in our corporate strategy, but also to position Bernicia to do more for tenants and communities in these challenging times.”
Paul Stevens, Centrus managing director, said: “Centrus is pleased to have arranged this funding for Bernicia. The competitive funding process, aided by Bernicia’s strong credit profile and presentation to potential lenders, resulted in very favourable terms that delivered on key treasury objectives set at the outset.”
Bernicia last month retained its top G1 V1 rating from the Regulator of Social Housing, the highest ratings housing associations can achieve afterassessment by the regulator. Retaining its top rating is official confirmation that Bernicia is well governed and financially resilient.
Last year, Bernicia set out its four-year corporate strategy which includes plans to invest £210m into its new and existing homes, services and communities. The firm owns and manages over 14,000 properties and provides homes and services to over 60,000 residents, while employing over 550 people with annual turnover in excess of £90m.
Earlier this year Bernicia became part of a consortium led by the North East and Yorkshire Net Zero Hub that secured funding from the Social Housing Decarbonisation Fund to deliver an £80m retrofit project across the North East and Yorkshire.
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