Ashington, Northumberland-based Bernicia, one of the largest providers of affordable homes in the North East of England, said it has secured a £100 million loan from Barclays Bank which will underpin the building of up to 1,000 new affordable homes.
Bernicia said it has also refinanced an existing £20 million revolving credit facility line with Barclays.
“The new loan will support the building of up to 1,000 new affordable homes across the North East, crucial in helping tackle the region’s housing shortage,” said Bernicia.
“A comprehensive competitive process was run, attracting strong appetite from multiple banks. Barclays emerged as the strongest option, offering the most compelling overall package for Bernicia.
“Centrus advised on the new facility, which is structured across two tranches – a seven-year and a ten-year – delivering highly competitive pricing for both tenors, which were among the best rates Centrus has seen for these tenors.
“Working with Barclays, a Loan-Linked ISDA has been put in place to manage interest rate exposure.”
Janette Longstaff, Executive Director of Finance at Bernicia, said: “The support shown by the Barclay’s team reflects their ongoing confidence in Bernicia, our business, people and our ambitious plans.
“Securing this new £100m facility adds further strength and capacity to Bernicia and will support us in the delivery of our new Corporate Strategy.
“Over the strategy period we will invest £400m in homes, neighbourhoods and communities.
“Well structured, competitively priced debt is central to making our ambitions deliverable – we were able to secure highly competitive terms from a strong field of lenders. Barclays offered the best overall package, and we’re delighted to be extending our relationship with them.”
Brian O’Connor, Relationship Director at Barclays, said: “We are delighted to have supported Bernicia with £100m of new funding, strengthening their ability to invest in communities across the North East.
“This new funding will support the delivery of up to 1,000 new affordable homes over the next five years, helping to address critical housing need. A great example of partnership driving real social impact.”
Tom Archer, Director at Centrus, advised and supported Bernicia on the funds raise.
“Bernicia is a fantastic organisation to work with, and this is a great outcome – well-structured loan and hedging facilities, at highly competitive pricing,” he said.
“We’re delighted to be supporting Bernicia as they look to deliver on an ambitious and important strategy for the North East.”
Legal counsel was provided by Naomi Roper, Partner in the Banking and Finance Team at Penningtons Manches Cooper.