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Hyde borrows £350m in two loans
Hyde Housing Association has borrowed £350m, split into two loans, one of which is a ‘club loan’ from two banks.
The 50,000-home association has borrowed £200m from NatWest over 10 years, with the club loan making up the remaining £150m over seven years.
Hyde said both deals were revolving credit facilities, signed on pricing similar to bond issues.
The club loan was with BNP Paribas and Allied Irish Banks, with Lloyds advising as lead agent as well as lender and CBRE advising on the deal. Hyde said it wants to bring other lenders into the loan.
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Hyde treasurer Anna Wallace said: “This refinancing demonstrates the level of confidence that investors have in our organisation. The 10-year loan builds further on our strong relationship with NatWest, while the club loan with a long-standing partner also brings back two additional partners with whom Hyde has worked before.
“It is on a revolving credit basis for a period of seven years. The two new loans replace a number of legacy loans, which were due to mature over a shorter timeframe. This deal benefits Hyde by smoothing out our repayment profile.”
Ms Wallace added that she does not envisage Hyde needing to return to the funding markets to deliver its five-year development programme.
Club loans or ‘syndicates’ have been relatively rare since the 2008 financial crisis. They are intended to diversify risk by spreading the funding between several organisations.
Hyde is the second housing association to borrow from a group of banks this month, with Sovereign completing a three-year unsecured revolving credit facility in a deal involving five lenders.
Update: at 10.23 on 10.7.19 This story was updated to clarify that Lloyds was a lender on the deal as well as lead agent.
