IDCM focuses on traditional infrastructure businesses such as regulated and non regulated utilities, oil and gas midstream, digital infrastructure, ports and other transport. We see continued demand for these type of assets due to significant growth in the quantum of capital that infrastructure investors’ are looking to deploy in this sector.
IDCM has assisted a wide range of borrowers in the Real Estate sector with a focus on alternative assets where our unique added value is in our ability to structure and arrange secured and unsecured transactions that suit and rely on the particular features of a borrower’s business model rather than traditional asset backed financing solutions.
We have been leading pioneers in the development of both equity and debt financing solutions to the Renewable & Flexible Energy sector for over a decade. As early as 2011, we structured and arranged the first ever solar bond, refinancing two UK ground mounted assets. Since then we have worked with a large number of management teams raising both equity and debt capital for different renewable & flexible energy technologies.
IDCM produced a research piece on the UK ports sector that was sent to a number of institutional investors. On the back of investor meetings to discuss the report, IDCM received reverse enquiry interest from an institutional investor in the ABP Credit. The investor had not previously invested in the ABP credit.
Further to the investor meeting with management, a long dated £50 million transaction was executed off ABP’s MTN Programme.
The transaction represented the longest dated transaction in the UK ports sector and provided ABP with attractive long term funding.
We were mandated by Pennon, parent company to waste management and renewable energy business Viridor and regulated water utility South West Water (SWW), to raise unsecured debt to fund the expansion of Viridor. SWW funded itself independently in the public bond market but Viridor was hitherto funded through shareholder loans and unsecured bank debt raised by Pennon at Group level.
As a holding company, Pennon’s cashflow consists of the dividends paid by both subsidiaries and their debt is structurally subordinated to the debt raised by SWW. However at 62% their leverage at the holdco was low compared to companies that have implemented a Whole Business Securitisation and our unique added value was getting potential lenders on board with that.
We raised £125 million of 17 year funding for Pennon which was provided by a single UK Insurance Company. At Pennon’s request, the transaction was documented as a loan. The tight pricing of the loan reflected the relatively modest gearing of Pennon and the strong dividend generation by SWW as well as Viridor.
Following a number of successful long dated financings arranged by IDCM that PHP has already completed to fund for their portfolio of Primary Care Centres based in the UK, the company mandated IDCM on this occasion to find long term finance for its growing portfolio of assets in the Republic of Ireland.
Investors were offered similar terms and conditions as in PHP’s previous Sterling denominated transactions and despite credit spread volatility in the public markets, the private placement market enabled them to achieve the same spread as on their most recent Sterling transaction, albeit pricing over Euro Mid Swaps rather than UK Gilts.
This enabled PHP to achieve a blended fixed rate of 2.497% and a weighted average maturity of 10.4 years.
“PHP’s first Euro PP and our fourth debt transaction with IDCM. As ever, IDCM proved attention to detail and going the extra mile results in great execution and pricing.”Richard Howell Finance Director
IDCM arranged a £66.5 million 7 year fixed rate term loan for Industrials UK LP, a subsidiary of Stenprop Limited, secured on a granular portfolio of multi-let industrial assets located across the UK.
Through a detailed knowledge of the market IDCM were able to quickly focus discussions with relevant potential lenders and concentrate on achieving the desired structure at the best possible margin.
IDCM managed the transaction from inception, through the negotiation of terms to completion / drawdown of funds, despite the impact on working practices and financial markets caused by the COVID-19 pandemic.
IDCM worked closely with Stenprop to deliver this refinancing and achieved a cost of debt that was well below the group’s prior all-in weighted average cost of debt.
“I enjoyed working with the IDCM team who were very professional and ran a thorough process, enabling us to achieve a well documented facility and attractive pricing.”James Wakelin Head of Debt and Special Projects
Specialist investment manager Albion Capital mandated IDCM to structure and refinance a portfolio of onshore wind, hydro and residential rooftop solar assets located in the UK. IDCM formulated a bespoke technical and legal due diligence process and strategy to reflect the portfolio nature both in terms of the large number of assets and the different technologies within the portfolio.
With this refinancing, Albion Capital successfully refinanced a complex renewables portfolio.
“IDCM were great to work with and added value at each stage of the process””David Gudgen Partner, Albion Capital
IDCM was mandated by Enpal, the largest provider of solar and battery solutions for homeowners in Germany, as joint financial adviser to structure and arrange a financing to refinance the installation of more than 15,000 solar rooftop and battery systems in Germany. This transaction was a follow-up mandate to deal which IDCM arranged for Enpal two years ago.
IDCM was responsible for building the complex financial models for both the senior and mezzanine debt facilities and let the audit process. We also worked with our co-adviser which was a European bank putting together the IM that was used to approach potential Lenders.
The joint advisers approached a select list of banks and institutional investors to ascertain appetite for the financing. Having received initial high level terms from a number of potential lenders a selected a group of preferred lenders (combination of banks and institutional investors) was chosen. IDCM undertook detailed term sheet negotiations regarding all commercial terms and provided assistance with the negotiation of the finance documents.
“"IDCM again proved to be a valuable partner and enabled us to run the transaction efficiently and successfully from deal marketing to signing"”Viktor Wingert, Co-Founder of Enpal
TP Social Housing REIT is landlord to Registered Providers who offer community based assisted living to elderly people and vulnerable adults. The REIT was established as recently as September 2017 and shortly thereafter appointed IDCM to assist with their inaugural debt raise. This was only the third transaction from this relatively new sector so investor education was key. With a collateral pool of 145 individual assets the property due diligence work was an important consideration in the delivery of the financing solution.
The borrower achieved the longest tenor and the tightest spread in the sector to date.
IDCM were mandated by Target to arrange a £50m 12 year Term Loan, secured on a pool of modern purpose built care homes in the UK. We were pleased to have concluded this refinancing in what is generally seen as a “difficult” sector with a chequered past, in which highly levered operators and conservatively geared landlords, such as Target, are all too often tarred with the same brush.
A single institutional investor provided the funds for what, we believe, is the first long dated institutional corporate (non CMBS) debt transaction for a landlord in the Care Home sector.
IDCM worked closely with potential investors to help them appreciate the difference between the landlord and operator model. We carefully structured the transaction to allow Target sufficient operational flexibility.
“Achieving our goal was in no small way attributable to IDCM’s tenacity, their understanding of the merits of our business model, and their commitment to being advocates of ours to the lending community.”Gordon Bland Finance Director