Allia C&C delighted to act as Peabody’s adviser on this project, and as joint solicitation agent managing amendments to its bonds.

Peabody, one of the UK’s largest not-for-profit housing associations, has successfully completed a significant restructuring of its debt to simplify the arrangements with its lenders and investors.  

The changes streamline arrangements that have developed over time as the organisation has grown.

The new structure provides clarity, consistency and efficiency across the board through:

  • A more transparent platform that supports scale in both bank and bond markets
  • Consistent ratings across the bonds (all three major agencies rate the bonds)
  • Administrative savings and security efficiency
  • A clearer benchmark for future issuance and enhanced secondary market liquidity
  • No change to its underlying financial position.

The changes are expected to reduce costs and operational risk over time, which will help Peabody manage its finances more efficiently and support ongoing investment in homes, communities and services for residents.

Henrietta Podd, Joint Head of Advisory and Funding at Allia C&C, said: “This exercise, which not only involved structural changes to Peabody’s six bond issues but also to the security arrangements affecting almost all its lenders and investors, has been a great team achievement for all involved. The simplified arrangements act as an excellent basis for Peabody’s funding programme going forward, across the banking, private placement and public markets.”

Phil Day, Chief Financial Officer at Peabody, said: “These changes bring greater clarity and consistency to our borrowing. They 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.”

Alongside the Peabody team and their legal counsel, Trowers & Hamlins, Allia C&C was delighted to work with its joint solicitation agents, Lloyds, with legal support from Addleshaw Goddard.