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Knowsley Street Lighting PFI Refinancing

Refinancing Advice

25th May 2022

DWPF acted as financial advisor to Equitix on the successful refinancing of the Knowsley street lighting and traffic signage PFI project.

 

The project originally reached financial close on 20 April 2011, involving the replacement of around 70% of the borough’s existing street lights and traffic signage units, and ongoing maintenance of in excess of 24,000 lighting columns, traffic bollards and traffic signs over a 25-year concession.

 

A new long-term senior debt facility was arranged with Aviva, replacing the original debt that was provided by Lloyds. Margins were reduced and gearing increased, resulting in a financial gain for both the Borough Council and the shareholder.

 

Dan Tyerman, Project Lead: “I am delighted to have acted on this street lighting refinancing – the third we have completed in this sub-sector, having previously advised on both the Blackpool and Nottingham street lighting refinancings.

 

The transaction builds on the strong pipeline of refinancings mandates we have undertaken for Equitix, with current conditions in financial markets resulting in incredibly competitive funding terms and, therefore, a highly advantageous ‘refinancing gain’ for Knowsley Borough Council.

 

DWPF is currently mandated on a number of further refinancing projects, and we would welcome the opportunity to discuss the viability of other potential refinancings with either private or public sector counterparties”.