L&Q has moved about £500m more of its debt to SONIA (Sterling Overnight Index Average), bringing the total amount of liabilities it has shifted to the rate to £1.1bn.
The 120,000-home landlord worked with one of its current lenders, Lloyds Bank, to transition “more than” £500m of its existing debt to the Bank of England-administered rate.
The G15 group has now moved £1.1bn of debt to SONIA, a spokesperson confirmed to Social Housing.
As of last December, L&Q’s net debt stood at £5.53bn. And available liquidity in the form of committed undrawn revolving credit facilities and non-restricted cash was £1.1bn.
Housing associations have been moving debt to SONIA as part of the transition from LIBOR. In March last year, Riverside became the first housing association to complete a loan known to incorporate SONIA.
The deadline for registered providers to transition loans to the new interest rate benchmark is this December.
L&Q has also extended by a year an existing £125m revolving credit facility (RCF) it has with Lloyds, as it works on a new five-year strategy. The length and rate of the existing RCF was not disclosed.
Martin Watts, director of treasury at L&Q, said the new strategy gives “the flexibility to prioritise safety, quality and jobs, while retaining ambitious long-term goals to tackle the national housing crisis and climate agenda”.