Restructuring of LOBO loans

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Research for Action

Dear Dover District Council,

A. How many LOBO loans (number of loans and total principal) has the council restructured, refinanced or for which the terms of the contracts have changed since 2015.

B. For such loans please provide a spreadsheet with the following information (a row for each loan and each parameter listed in a separate column):
1. Internal reference number
2. Principal of the original LOBO loan
3. Initial counter-party of the original LOBO loan
4. Drawdown date of the original LOBO loan
5. Maturity date of the original LOBO loan
6. Date when the LOBO loan was restructured/refinanced
7. Breakage cost or fee paid to the counter-party for the refinancing/restructuring
8. How was the loan restructured/refinanced? (i.e. loan was transformed into fixed rate loan by removing the option, or loan was repaid with a new bank loan, or with a PWLB loan, or other - please specify)
9. Principal of new PWLB or bank loan used to refinance the LOBO loan (if applicable)
10. Maturity date of new PWLB or bank loan used to refinance the LOBO loan (if applicable)
11. Interest rate of new PWLB or bank loan used to refinance the LOBO loan (if applicable)
12. Fair value of new PWLB or bank loan used to refinance the LOBO loan (if applicable)
13. Name of any third-party advisor used for the restructuring/refinancing
14. Fee paid to the advisor for the restructuring/refinancing
15. Name of broker who arranged the restructuring/refinancing
16. Fee paid to the broker for the restructuring/refinancing

C. Please provide copies of new contracts and any other official documents related to the restructuring/refinancing

D. Please provide invoices for the broker fees for the restructuring/refinancing

Yours faithfully,

Ludovica Rogers

DDC FreedomOfInformation, Dover District Council

2 Attachments

Dear Ms Rogers

 

Thank you for your request for information about Restructuring of LOBO
Loans.   Your request was received on 18 March 2019 and we are dealing
with it under the terms of the Freedom of Information Act 2000 or
Environmental Information Regulations 2004, as appropriate. We will
endeavour to respond within 20 working days and if we think the request
requires extra time then we will contact you and let you know.

 

In some circumstances a fee may be chargeable and if that is the case, I
will let you know the likely charges before proceeding.

 

If you have any queries regarding this email, please contact me.

 

Regards

 

Kerry

 

 

Kerry Scott
Corporate Services Officer
Dover District Council
Council Offices, White Cliffs
Business Park, Whitfield, Dover
[1]cid:image001.jpg@01D18E99.2FB77DF0     CT16 3PJ
Tel: 01304 872312
Fax: 01304 872300
Email:
[2][email address]
Web:  [3]http://dover.gov.uk
 
P Please consider the environment before printing this email

 

  [4]cid:image004.jpg@01D271A6.018C08B0

Dover District Council is a data controller under GDPR, your attention is
drawn to our [5]Corporate Privacy Notice. This explains how we will use
and share your personal information and protect your privacy and rights.

 

 

 

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DDC FreedomOfInformation, Dover District Council

2 Attachments

Dear Ms Rogers

 

I am writing in respect of your enquiry for information held by this
Authority received on 18 March 2019 and to confirm that we have completed
the search for the information that you requested.  The information you
have sought is set out below.

 

Up until the beginning of December 2018 the Council held a £3m LOBO with
KA Finanz (the original loan had been taken out with Dresdner bank in
2002), the loan was due to mature in 2042. The fixed interest rate payable
was 4.75%.  The Council was invited to participate in a competitive
bidding process to repurchase its LOBO loan as KA Finanz had decided to
sell their LOBO (Lender Option Borrower Option) portfolio. An assessment
of the long term costs of the LOBO compared to alternative borrowing
options was undertaken. A bid of £3.6m was submitted to the auction
process on the 3 December 2018.  This bid was successful and the Council
no longer holds any LOBO loans.  The refinancing of the LOBO will be
initially financed from cashflow funds.  No advisor nor brokerage fees
were paid.

 

If you have any queries about this email, please contact me.

 

I hope you find the information useful but if, for whatever reason, you
are unhappy with the service you have received in relation to your request
and wish to make a complaint or request a review of our decision, you are
entitled to pursue any dissatisfaction through the Council’s Complaints
Procedure.

 

If you are not content with the outcome of your complaint, you may apply
directly to the Information Commissioner for a decision. Generally, the
ICO cannot make a decision unless you have exhausted the complaints
procedure provided by the Council.   The Information Commissioner can be
contacted at: The Information Commissioner’s Office, Wycliffe House, Water
Lane, Wilmslow, Cheshire SK9 5AF.

 

Regards

 

Kerry

 

 

Kerry Scott
Corporate Services Officer
Dover District Council
Council Offices, White Cliffs
Business Park, Whitfield, Dover
[1]cid:image001.jpg@01D18E99.47360C80     CT16 3PJ
 Tel: 01304 872312
Fax: 01304 872300
Email:
[2][email address]
Web:  [3]http://dover.gov.uk
 
P Please consider the environment before printing this email

 

  [4]cid:image004.jpg@01D271A6.018C08B0

Dover District Council is a data controller under GDPR, your attention is
drawn to our [5]Corporate Privacy Notice. This explains how we will use
and share your personal information and protect your privacy and rights.

 

 

 

show quoted sections