Special post Referendum
defined benefit financing fund launch notification.

Leveraged & Equity Investment offer a range of unique financing solutions to corporate bodies across Europe that have defined benefit pension deficits.

The referendum result has produced a number of political and economic uncertainties that add to concerns already facing the global economy. These issues have increased deficits, and potentially increased sponsor, trustee and employee concerns.

Leveraged & Equity Investment has taken advantage of certain movements in financial markets to create a special GBP denominated fund, available to United Kingdom domiciled corporate bodies only. The total fund size is £500 million and only available until 30 September 2016. The fund cannot be increased or the closing date extended.

The fund will finance deficit elimination or reduction, targeted buy out, or full buy out. financing

The “Brexit Fund” has certain criteria that apply.

1. Individual transaction size £20 to £50 million, except buy out financing which can be for maximum of £75 million.
2. Financing term 7 – 15 years, buy out maximum 20 years.
3. Standard fees reduced by 20%, and fixed over three transaction size bands.
4. Financing costs reduced by 50 – 100 basis points, subject to transaction size over three transaction size bands.
5. Minimum credit quality assessed as “Investment Grade”. A formal rating is not required, but this indicates the requisite credit quality considered.
6. Commitment to financing, with agreement to proceed, required by 30 September 2016.

Solutions offered through the “Post Referendum Fund” include on or off balance sheet financing and a limited number of special purpose vehicle options. The solutions eliminate, or reduce, the deficit immediately. Alternatively buy out financing removes the scheme liability immediately. The cost is spread over years. Use future cashflow for future pension liabilities, and optionally reduce liability volatility.

Initial enquiries should be addressed to the undersigned.

Chris Bardouleau
Managing Partner

Direct Portable: +44 871 3143 222
Email: chrisb@leaseinvestment.com