<
p>The funding line behind the Blemain Group is seeking £200 million of capital, in an effort to plug a gap caused by £245 million commercial loan.Jerrold Holdings – A UK mortgage provider that provides the funding to the Blemain Group - is set to raise £200 million worth of capital via five year senior secured notes according to a knowledgeable source. According to early reports, Royal Bank of Scotland Group Plc, Lloyds Banking Group Plc and Jefferies Group LLC are managing the sale of the high-yield-bond.
International financial ratings service, Standard and Poor’s has labelled the debt with a B+ rating in a report. B+ is four grades below investment grade, inferring that there could be a relative risk of default.
Jerrold Holdings withdrew the loan in question last year totalling at £640 million, from a £395 million structured secured loan and a £245 million syndicated loan. The funds were arranged via a host of high street banks, including RBS, National Australia Bank and Lloyds Banking Group with support from Co-Operative Bank.
At the time, Gary Beckett, Jerrold Holdings’ Group Finance Director, , said: "It is a sign of confidence in the strength of our business that we have been able to arrange such a significant commitment, which provides a strong foundation on which to deliver our growth plans over the coming years. “
He continued: “With this facility in place we can continue to play an important role in providing financial liquidity within a constrained market, helping existing and new customers while also creating investment and employment opportunities."
Jerrold Holdings provides funding for a host of industry lenders, including names such as; Lancashire Mortgage Corporation; Cheshire Mortgage Corporation, Blemain Finance and Auction Finance.
The Manchester-based operation was co-founded in 1974 by Henry Moser, and currently has a loan book worth in excess of £1 billion.
Private equity company, Equistone Partners Europe Ltd, formerly Barclays Private Equity, purchased a share in Jerrold Holdings back in 2006 for £113.5 million.
The full terms of the £200 million high-yield bond deal are yet to be confirmed.
Jerrold Holdings specialises in offering first and second-charge mortgages against commercial and residential properties and works with brokers, professional firms and auction houses across the country.
The funding line behind the Blemain Group is seeking £200 million of capital, in an effort to plug a gap caused by a £245 million commercial loan..
Leave a comment