DEAL: Terra Firma/Annington Homes’ £4 billion refinancing

Author: | Published: 28 Jul 2017

Terra Firma has replaced £4 billion ($5.2 billion) of securitisations issued by portfolio company Annington Homes with a combination of new equity, bonds and bank debt.

The company is the largest residential property owner in the UK after acquiring nearly 60,000 properties from the ministry of defence (MoD) for £1.7 billion in 1996 – it leases most of the 40,000 it still owns back to the MoD. The transaction removes restrictions associated with the use of the underlying real estate as collateral, giving Annington Homes more flexibility to grow its private rental sector (PRS) strategy.

"Annington Homes was quite constrained in terms of buying new assets and growing the PRS part of the business," said William Burnand, head of legal at Terra Firma. "We wanted to replace the several layers of debt the company had with something less expensive and more flexible."...