Restructuring of LOBO loans
Dear East Ayrshire 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
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CLASSIFICATION: PUBLIC
Dear Ms Rogers
In response to your recent freedom of information request, I am able to
provide you with the following information :-
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?
The Council has not restructured or refinanced any LOBO loans since 2015.
Barclays advised in June 2016 that they had taken the decision to waive
their right to vary the applicable interest rate on 5 lobo loans the
Council held. These are summarised on the attached spreadsheet.
I hope this is of assistance however if you are dissatisfied with how this
has been dealt with please see the attached Review Procedure Notice.
Regards
Robin Baker
Financial Controller
East Ayrshire Council
Dear Robin Baker,
Thank you for your response.
Please can you confirm the matter was dealt with directly with the bank and no advisors or brokers were involved?
Can you also please provide, for each Barclays loan, the legal document which indicates that the option has been removed as requested in question C.
Kind regards,
Ludovica Rogers
CLASSIFICATION: OFFICIAL
Dear Ms Rogers
I can confirm that the matter was dealt with directly with the bank and no advisors were involved. I attached copy correspondence which is identical for each loan apart from the loan reference number in each case, which confirms the change made.
Regards
Robin Baker
Dear Robin Baker,
Thank you for providing all the information,
Kind regards,
Ludovica Rogers
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