Chatham Financial was delighted to advise MORhomes on its latest tap issue which raised £25m for new borrowing member, Thrive Homes and a further £10m for Melin in addition to its existing MORhomes loan.
The bond was issued from MORhomes’ EMTN programme on Monday, 13th April and achieved a similar spread to Optivo’s bond the previous week, bringing the 18-year issue to a total of £333.9m.
The decision to issue was taken quickly after initial discussions with the lead manager, Barclays, on the Friday before launch, anticipating an improvement in the bond market the following week. The final decision to issue was then made on Monday morning as the gilt market rallied and the deal was priced in the early afternoon.
Both Melin and Thrive had a Standby Liquidity Agreement with MORhomes, which meant a credit line and the necessary documentation were already in place, allowing both HA’s to take advantage of market opportunities at short notice. MORhomes does not require a full security package on day one but still allows full drawing of funds, making it a very useful facility at a time when banks are struggling to deal with requests for funding and councils are unable to complete searches.
More details of the transaction can be found on the MORhomes website at www.morhomes.co.uk.
Chatham Financial is a retained adviser of MORhomes.