Shire Housing

Procuring new funding to refinance existing debt and enable future expansion

Shire Housing Association engaged Altair Treasury and Finance Solutions (ATFS) to advise on procuring new funding to refinance existing debt, enable future expansion and to enhance existing office and tenant facilities. A legacy loan facility was also frustrating Shire’s future business planning decisions due to restrictive covenants.

About the project

ATFS reviewed Shire’s business plan and funding requirements, established key objectives, assessed available options for new finance and recommended a strategy for implementation. Working with RBS and Shire’s legal advisers Addleshaws, ATFS provided support through to successful completion including:

• Advice for Shire’s Senior Management Team and Board on funding options to facilitate decision making.
• Recommendation of lenders to approach and management of a tender process.
• Assessment of pricing and T&Cs offered leading to recommendation of a preferred lender.
• Advice and support during negotiation of the critical commercial terms and conditions of loan documentation.


The project outcome was successful delivery of a 15-year £10.5m bi-lateral loan from RBS, which included a Revolving Credit Facility (RCF) to allow Shire flexibility to manage cashflow and surplus cash to minimise interest costs.

This new product from RBS provided Shire with a long-term facility combining the certainty of a fixed rate with variable rates for the RCF element.

Completion of this transaction in 6 months confirms that Housing Associations continue to be an attractive proposition for lenders. Despite continued market uncertainties, long term funding appetite in Scotland remains strong.

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