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The Devonshires’ Banking and Securities Teams have advised The Hyde Group in connection with its recent £250 million bond issue, which completed on 23 July 2010.
Lloyds TSB and Royal Bank of Scotland acted as joint bookrunners to the issue, which achieved an interest rate of 5.1 per cent, representing a margin of 105 basis points of the 30-year gilt rate. The initial issue was of £200 million, with an option for Hyde to issue a further £50 million. Both Hyde and the bonds themselves were rated Aa2 by Moody's.
The bonds were issued in the name of Hyde Housing Association Ltd, the group parent, with Martlet Homes and Hyde Southbank Homes providing part of the security for the issue. The proceeds will be used to refinance some existing debt, and also to support the Group's development programme. The bond also attracted positive attention from the Housing Minister, making an appearance on Grant Shapps' Twitter page.
Working to fairly aggressive deadlines, we successfully charged 3595 units as security on closing, sufficient to secure the £200 million required and we have 900 units ready for charging against the £50 million reserve bond when required by Hyde.
Ray Christopher, Hyde’s Group Director of Tax & Treasury led the debut capital markets transaction. ‘’Access to the capital markets and protecting the rating are important corporate financial goals of the organisation and Hyde is very pleased to open up its account in the bond markets for the first time. Working closely with Devonshires to a very tight timetable we were able to provide an attractive structure, covenant package and documentation that underpinned our strong credit story. The order book was over subscribed totalling in excess of £350m comprising high quality institutional Sterling investors’’, he said.
Sam Brett, Hyde’s Treasury Securities Manager, confirmed that “the Securities team’s commitment, understanding and support were second to none”.
Devonshires' chief executive, Andrew Cowan, was delighted "Working on the bond has been a real team effort, working with Hyde and the banks to deliver this complex transaction with the desired result".
The Devonshires' Banking team was led by Julian Barker, and also included Andrew Cowan, Gareth Hall, and Eleanor James. The Devonshires’ Securities Team was led by Sharon Kirkham and also included Stacey Price, Saghar Roya, Eunice Cox, Mark Gugenheim, Indre Skackovaite, Hulya Ok and Joe Jerrard.
