L&Q/East Thames merger and £2.6 billion refinancing

Overview:

• London & Quadrant (L&Q) and East Thames have completed their merger.
• The two housing organisations own and manage over 90,0000 homes across the UK and the combined entity is valued at £22 billion.
• The combined entity is looking to build 100,000 new homes over the next decade.
• In addition it will create a new home specialist care and support subsidiary.
• The pair have also refinanced £2.6 billion in bank and bond financing.
• The deal represents the largest ever refinancing in the social housing sector.
• The deal consisted of refinancing and restructuring bank, bond and derivatives elements.
• The housing association sector has seen several mergers recently following changes to Government grants relating to tenant rents.

Sam Duke - Editor