Financial deal gives big boost to university

The University of Bath has secured £50m from a specialist insurer of defined benefit pension funds.

Pension Insurance Corporation (PIC) has invested the cash in debt issued by the university. The funds will be used to refinance an existing loan, which the university said would allow it to focus on education provision, developing research and student experience.

PIC secured the total debt issuance ahead of other investors on the strength of its ability to provide a 50-year maturity, it said.

Martin Williams, finance director at the University of Bath, said: “We are pleased to have worked with PIC on this debt issuance.

“The PIC team has a very good understanding of the needs of universities as a result of their extensive experience of investing in this sector and were flexible and responsive in helping us achieve our aims. The University of Bath is performing extremely well and this refinancing, whilst maintaining our same level of debt, will help us to consolidate our position combining education, world-leading research and the wider student experience.”

The university self-arranged the transaction and was advised by EY Capital & Debt Advisory. Greenberg Traurig provided legal advice to the investors, while Mills & Reeve provided legal advice to the university.