Penfida provides a full range of covenant and broader corporate finance advisory services ranging from regular covenant evaluation, where we properly consider the extent to which environmental, social and governance forces may impact the sponsor, its sector and its markets, through to affordability assessment and monitoring, and advice in specific situations, such as corporate transactions, restructurings, refinancings, contingent asset arrangements and scheme events.

Our services include the following:

Emplpoyer convenant assessment and monitoring
  • We assess the strengths and risks inherent in your covenant to help you determine the extent to which it can support the scheme, both now and over the longer term
  • This includes a valuation of the covenant and an analysis of affordability in the context of commitments to all stakeholders, and may include identification and implementation of covenant enhancement options
  • We support on TCFD compliance and reporting, as part of covenant assessment
  • Our approach is based on well-established corporate finance techniques, that integrate into your funding and investment decisions
  • We identify key indicators for your covenant and can implement a robust framework to identify at an early stage any deterioration in the employer covenant
  • We provide clear advice so you know what actions are needed
  • We will support you in your negotiations, including valuation, tactical planning and ensuring a co-ordinated approach to funding and related issues
Corporate Activity
  • Corporate activity – whether M&A, disposals, refinancing or restructurings – can have a significant impact on a scheme
  • Our background as corporate finance advisers means we have extensive experience of the complexities of such transactions and how to evaluate and navigate through them
  • We support our trustee clients in
    • Anticipating potential corporate activity and understanding its impact on the scheme from a technical, financial and regulatory perspective
    • Communicating with the sponsor, members and other 3rd parties
    • Executing plans for the scheme to facilitate mutually beneficial outcomes
  • We have an in-depth understanding of the Pension Regulator and also other regulatory bodies including the Takeover Panel and the Stock Exchange
Integrated Risk Management
  • We work closely with schemes and sponsors to establish an IRM framework and provide analysis and advice to help determine an appropriate balance of covenant, funding and investment risk to optimise scheme outcomes
  • Our approach is both quantitative and qualitative and includes development and analysis of key risk scenarios affecting the sponsor and the scheme on an integrated basis
Other Services
  • Advice in connection with Flexible Apportionment Arrangements (FAAs) and Regulated Apportionment Arrangements (RAAs)
  • Counterparty analysis for buy outs and buy ins
  • PPF levy support
  • Advice in connection with developing contingent asset protections
  • Advice in connection with asset backed funding structures
  • Advice in relation to project financing e.g. infrastructure investment

How we can help you

We provide the full range of corporate finance advisory services, advising trustees across the spectrum of scenarios they may be faced with, ranging from scheme specific funding discussions to corporate events.