Keble College – Debt structure & long term institutional financing

Keble College – Debt structure & long term institutional financing

Keble College, which was founded in 1870 and is one of the largest of the constituent colleges of the University of Oxford closed a £30m long dated financing with an institutional investor.

The financing, which is unsecured, has a final maturity of 40 years and a fixed coupon of 3.366%. The proceeds of the borrowing will be used for development of additional student accommodation and research space at the Acland Site in the centre of Oxford.

Centrus supported Keble over a period of two years providing advice on the valuation of the Acland site, potential debt structures and engagement with potential lenders. A fixed rate unlisted note structure was chosen over a lease or index linked debt due in large part to the receipt by Keble of a £25m capital grant from the HB Allen Charitable Trust.

Centrus undertook investor contact and negotiations on behalf of Keble with selected institutional investors following which a single investor, offering the best combination of price and maturity, was chosen. A delayed drawdown was agreed with the investor at no additional cost to Keble.

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