Advising the trustees of a substantial DB pension scheme in responding to challenging market conditions
Our client was the trustee of a substantial DB pension scheme sponsored by a group of companies with a diverse lender base. The sponsor group needed to renegotiate its lending arrangements in the face of challenging market conditions so as to create further liquidity headroom.
We advised the trustees, in conjunction with their actuarial and legal advisers, on a broad range of measures to support the scheme, including a contribution plan with a contingent element linked to future business performance together with various protective measures and information protocols. This enabled the group to achieve successful negotiations with its lenders while at the same time helping the trustees to protect the scheme’s interests.
How we helped our clients
We continue to provide a broad range of covenant, actuarial, IRM and other specialist advice to DB scheme sponsors and trustees.
Specific areas where we have assisted clients over 2020 and into 2021 include:
- Covenant advice in relation both to triennial valuations and corporate transactions – including substantial M&A, refinancings and restructurings – often on a multi-creditor basis
- Advice in relation to contingent and other funding structures and related assets
- Advice in connection with protective mechanisms for schemes, in conjunction with legal advisers (we do not provide legal advice)
- Integrated Risk Management (IRM) advice
- Advice in connection with PPF levy mitigation
- Actuarial advice in relation to corporate transactions
- Expert actuarial advice in relation to legal disputes
Find out more about how our pensions advisory team can support you.