Newbridge advised on a 5th successful refinancing of a PFI project, signed 13 April. This generated considerable benefit for Oldham Metropolitan Borough Council up front and every year for the remaining 20 years of the project, demonstrating how PFI projects can be a success story, making savings through all parties working together to take advantage of improved funding market conditions.
This refinancing was for the Oldham Social Housing PFI Project. Newbridge advised the shareholders JLIF and Great Places Housing Association on replacing the existing senior debt with a new fixed rate loan from ING, the first such loan done with a bank for a PFI project for almost 10 years. The structure also incorporated an orphan swap to reduce swap break costs and so further enhance savings.
The Oldham Social Housing Project is a 25-year PFI involving the construction and management of 420 new homes and the refurbishment of 318 existing ones, originally signed in 2012.