Trowers & Hamlins has advised Coastline Housing on its first SONIA based loan facility from Lloyds.
Coastline, the South West based housing association, has signed up to a revolving credit facility of £30 million for five years with a potential extension out to seven years from Lloyds with a variable interest rate and standard financial covenants. This facility differs significantly in terms of the benchmark for that variable interest rate as Coastline is the one of the first RPs to test the new SONIA based interest rate product developed in response to the withdrawal of LIBOR and now offered by Lloyds to the market.
Since the 1980s LIBOR has been the principal choice of variable rate for UK lenders. This departure from LIBOR is being actively encouraged by the Financial Conduct Authority and the Bank of England as LIBOR will cease to be the key interest-rate benchmark for sterling by the end of 2021 and no new LIBOR products will be offered to the market after the end of March 2021.
Jasna Djurisic (Picture), from the Trowers Banking and Finance, led the team.
Involved fees earner: Jasna Djurisic – Trowers & Hamlins;
Law Firms: Trowers & Hamlins;
Clients: Coastline Housing Ltd;