QuotedData’s morning briefing 19 January 2021

In QuotedData’s morning briefing 19 January 2021;

  • Hg has held a minority position in TeamSystem since 2015, following its majority exit to a vehicle indirectly held by Hellman & Friedman Capital Partners VII, L.P. A transaction has recently been agreed to transfer TeamSystem to a vehicle indirectly held by Hellman & Friedman Capital Partners IX, L.P. As part of this transaction, Hg’s Genesis 6 Fund will sell its minority holding in TeamSystem. This transaction values HGT’s existing investments in TeamSystem at £21.3m. The trust will then invest approximately £14.3m in TeamSystem, with other institutional clients of Hg investing alongside HGT through the Hg Genesis 8 Fund. As a result of this transaction, Hg will remain as a minority investor in the business. The NAV is estimated at 301.3p.
  • UK Mortgages managed to securitise its Keystone mortgage portfolio. The senior, least risky, tranche of Hops Hill No. 1 was oversubscribed by 3.4x. Lower ranking tranches were oversubscribed by more than this. This meant that the interest rates on these tranches were lower – benefitting UK Mortgages which holds the bottom-ranking equity tranche. The fund is now focused on accumulating mortgages to go into Hops Hill No. 2.
  • British Land has appointed Bhavesh Mistry as chief financial officer. Mistry is currently deputy chief financial officer at Tesco and was previously finance director at Whitbread’s hotels & restaurants division. He will become an executive director and join the main board at British Land when he makes the move no later than 1 August 2021.

  • Apax Global Alpha has renegotiated its revolving credit facility, which was due to expire on 5 November 2021, to a perpetual evergreen structure whereby either party is required to give 2 years notice to terminate the agreement. The amended revolving credit facility remains at €140m with the margin increasing from 210 bps (2.1%) to 230 bps (over Euribor or Libor depending on the currency drawn) and the non-utilisation fee decreasing to c.100 bps per annum on an initial blended basis from 120 bps per annum.

We also have results from Bankers Investment Trust, a senior management shake up at U and I Group, rent collection updates from Hammerson and Town Centre Securities and a business update from Impact Healthcare REIT.

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