Lincolnshire Housing Partnership (LHP) has sold the remaining £35m of its retained bonds from a £150m public issuance.
The 12,700-home landlord, which formed from the merger of Boston Mayflower and Shoreline Housing Partnership in 2018, announced yesterday (8 June) that it had reached final close on the sale of the bonds, whose sale had been deferred for a year.
Boston Mayflower issued a £150m, 2059 bond in September 2014 with a coupon of 4.321 per cent, of which £75m of the bonds were retained.
In March this year, credit rating agency Standard & Poor’s (S&P) downgraded its outlook on LHP to ‘negative’, partly because of the landlord’s repairs programme being higher than the agency “previously anticipated”, which it said will lead to weaker margins and debt metrics.
S&P reaffirmed LHP’s A+ credit rating.
In its last reported full year to March 2020, LHP recorded a flat group post-tax surplus of £8.8m on a turnover of £53.1m.
Debt stood at £161.5m, but S&P said it expected this to rise to £192m in the most recently completed financial year as its “base case” scenario for the landlord.