Peabody’s simplified debt structure targets reduced costs

All of Peabody’s bonds will now be rated by all three major credit rating agencies.

Phil Day, chief financial officer at Peabody, said: “[The changes] make it easier for investors to understand our structure and compare our bonds, while also helping us operate more efficiently.

“Having a simpler structure puts us in a stronger position when we access the capital markets in future. That helps us secure funding on the best terms and supports our long-term plans to invest in homes and services for residents.”

Peabody was supported by Allia C&C as financial advisors and both Allia C&C and Lloyds as joint solicitation agents, as well as Trowers & Hamlins as legal advisor.

Rebecca Tozer, associate director of debt capital markets at Lloyds, said: “We are delighted to have supported the successful completion of this important portfolio consent exercise, which represents a key milestone in simplifying Peabody’s debt structure across its loans, bonds and private placements.”

She added: “The completion of the process reflects strong engagement from stakeholders and underlines Peabody’s proactive approach to balance sheet and capital structure management.”

Henrietta Podd, joint head of advisory and funding at Allia C&C, said the changes involved structural changes to Peabody’s six bond issues and also the “security arrangements affecting almost all its lends and investors”.

“The simplified arrangements act as an excellent basis for Peabody’s funding programme going forward, across the banking, private placement and public markets,” she said.

Eleanor James, partner at Trowers & Hamlins, said the brief was “to deliver a fit-for-the-future structure for Peabody’s capital markets instruments and security charging”.

She continued: “We are pleased to have supported Peabody with this important project and trust it provides a stable platform for future debt issuance which will support vital housing delivery across London and the South East.”