Restructuring of LOBO loans

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Research for Action

Dear Falkirk 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

FOI, Falkirk Council

1 Attachment

Good morning,

 

Freedom of Information (Scotland) Act 2002

 

We acknowledge receipt of your information request received on 18/03/19.
The Reference Number for this is 96406.

 

We have 20 working days to deal with your request from the date that we
received it, but we will respond earlier where possible.

 

 

On behalf of Falkirk Council

Lynn

Information Team

 

 

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McGhee, Carole, Falkirk Council

1 Attachment

 

 

Capital, Treasury & Insurance Manager

Tel 01324 506340

 

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McGhee, Carole, Falkirk Council

4 Attachments

Good afternoon,

 

Please find attached Falkirk Council’s response to your recent FOI enquiry
regarding LOBO Loans

 

Regards

 

Carole McGhee

 

 

Capital, Treasury & Insurance Manager

Tel 01324 506340

 

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Research for Action

Thank you for the information provided. Can you confirm that for the change to the terms of the Barclays loans the council dealt directly with the bank and that no brokers or advisors were involved.
Can you also provide copies of the original documents that indicate the change in terms to the loans as requested in point C of my FOI request.
Kind regards,
Ludovica Rogers

McGhee, Carole, Falkirk Council

I will be out of the office until Thursday 18 April and will respond to
your email when I return. However if you need to speak with someone prior
to then, please contact Michael Mooney on  ext 6039.

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McGhee, Carole, Falkirk Council

1 Attachment

Good Morning,

I can confirm that the Council dealt directly with Barclays and that no brokers or advisors were involved in discussion between the Council and Barclays.

I have attached a copy of the letter from Barclays advising of their decision to move to Fixed Rate loans in relation to the 2 LOBO loans.

You will see from the copy letter that there are hand written observations noted on it.

One of the observation refers to "any angles from Capita?". This was a comment from our CFO and I contacted Capita (the Council's Treasury Advisors - now Link) to ask if they saw any issue with this. They advised that they did not. There was no charge for this advice as it was provided under the Treasury Advisory contract the Council has with Capita.

The other observation was " Refinancing angle?". Again an observation from our CFO. This was not pursued and the conversion to Fixed Rate loans was accepted between Falkirk Council and Barclays.

I trust this answers your enquiry fully.

Regards

Carole

Capital, Treasury & Insurance Manager
Tel 01324 506340

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Research for Action

Dear Falkirk Council,
Thank you for providing the letter. Could you also please provide the Deed Poll which would have accompanied the letter indicating the removal of the option.
Kind regards,
Ludovica Rogers