top of page

£70m Debt Refinancing For A Property Investor in Financial Distress: A Rapid Turnaround Strategy

  • sabbirrahman0
  • 8 hours ago
  • 2 min read

Langdon Capital was approached by a UK property investor with total assets worth £90m to refinance £14m of their debt portfolio which had fallen into arrears due to the persistence of a sharp drop in occupancy rates and market values which began during Covid.


ree

In a time sensitive situation, we requested sight of the investor's entire portfolio to conduct analysis. We established that no lender would be willing to refinance only the bad debt portion of debt. We informed the client that they were not in a strong negotiating position and would need to allow a lender to refinance their entire portfolio to stand a chance of taking out the lender who had began enforcement proceedings on the £14m of bad debt.


We presented the turnaround opportunity to a number of institutional investors alongside our ideas and, within 24 hours, had brought one onto a call with the client who presented a work-out plan to them. The plan required the client to refinance the entire £70m debt portfolio with the investor and sell down £40m of their assets over 18-months to make whole the £14m debt tranche that had fallen into arrears and lower the LTV on the remaining £50m portfolio back under 70%, which would facilitate an exit from the investor's emergency facility onto a long-term investment facility.


This transaction showcases Langdon Capital's expertise in refinancing a sub-investment grade credit facing financial distress by tactically presenting the situation to select institutional investors as a downside protected investment opportunity with significant upside potential over a short time horizon.


Enquiries


For further information, please contact info@langdoncap.com 


About the author


Sabbir Rahman has executed over £200 billion in notional value of debt, equity, M&A and derivatives transactions with global corporates, private equity funds and financial sponsor groups. He has 20 years’ experience, including at Langdon Capital, Morgan Stanley, Lazard and Barclays Investment Bank.


About Langdon Capital


Langdon Capital provides capital introductions services to growing owner-operated mid-market businesses and consulting services to global financial institutions and corporates.


CORPORATE FINANCE - Langdon Capital raises non-dilutive debt and growth equity for owner-operated mid-market businesses with EBITDA between £2 million and £20 million from private credit funds, banks, private equity firms, venture capital funds, corporate VC arms, family offices and venture debt funds. 


COMMERCIAL FINANCE - Langdon Capital assists property developers, property investors, SMEs and mid-market corporates obtain commercial finance facilities, typically from £1 million to £50 million in size, from a panel of over 130 specialist lenders and institutional investors. 


CONSULTING - Langdon Capital provides consulting services to global financial institutions and corporates facing quantitative finance, transformations, business strategy and treasury challenges.




This is not financial advice or any offer, invitation or inducement to sell or provide financial products or services or to engage in any form of investment activity.

 
 
 

Comments

  • LinkedIn

contact@langdoncap.com

Langdon Capital is a trading name of Langdon Capital Limited, a company registered in England & Wales with company number 12600771 and registered offices at 71-75 Shelton Street, Covent Garden, London, WC2H 9FF.

​​​​​​​​​​​

Langdon Capital Limited is an intermediary and not a principal investor. Langdon Capital's activities are not regulated by the Financial Conduct Authority (FCA) as they fall outside the scope of PERG 2.7, "Activities: a broad outline," of the FCA handbook, or within its exemptions. Langdon Capital introduces Businesses and Individuals seeking capital for business purposes (collectively "Clients") to principal investors in debt and equity (collectively "Capital Providers"), with the outcome of such engagements being investment decisions made by Capital Providers, not transactions. Transactions are subsequently concluded directly between Capital Providers and Investees, without the involvement of Langdon Capital. The act of supplying information about Clients to Capital Providers does not imply, or extend to, making recommendations to Capital Providers and therefore does not constitute the regulated activity of ‘Advising on Investments.’ ​Langdon Capital only introduces Individual Clients to Capital Providers when exemptions to PERG 2.7 are met under the following conditions: (1) the introduction is made only in the context of a property loan; (2) loan proceeds are only to be used for commercial purposes; (3) the loan amount is greater than £25,000; (4) if land is used as collateral for the loan, then less than 40% of the land is used for dwelling purposes by the borrower; and (5) the borrower signs a declaration which provides that loan proceeds shall be used wholly for business purposes and that the borrower agrees to forgo the protection and remedies that would be available to them if the agreement were a regulated consumer credit agreement. Langdon Capital earns fees from its Clients and some Capital Providers and discloses commissions to its Clients.

​​​​

Copyright © 2024 Langdon Capital Limited. All rights reserved.

bottom of page