Arlingclose advise on £73m bond buyback for Birmingham City Council (BCC)
Arlingclose advise on £73m bond buyback for Birmingham City Council (BCC). The transaction, concluded in October 2024, involved replacing £73m nominal of its £215m 9.675% bonds due 2030 (“the Bonds”) with a package of new debt.
£88m of replacement funding was borrowed from the Public Works Loan Board at an average rate of 4.6% and with a similar repayment profile to the existing bonds. The increase in debt will be more than offset by the significant reduction in interest rate over the next 5 years. Cumulative savings are projected to be £2.8m.
Arlingclose negotiated the purchase price of the bonds and supported BCC through all stages of the transactions, providing analysis covering the risks and rewards of various refinancing options.
David Blake, Director at Arlingclose said “Where we find investors willing to negotiate on debt repurchases clients can unlock significant value, it was a pleasure working with BCC on this transaction”.
For more information on debt restructuring and refinancing opportunities, please contact us at treasury@arlingclose.com.
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