Over the last few years, interest rates have moved at a pace few could have predicted. Facilities that once looked competitive now look very different. At the same time, banks are becoming more selective, liquidity is tightening in certain sectors, and credit committees are placing greater scrutiny on structure, jurisdiction and source of wealth, amongst other things.

Having spent time recently in Jersey meeting with trustees, intermediaries and private clients, one recurring theme has been the number of legacy debt arrangements still sitting in structures without having been properly reviewed for several years. In many cases, these are perfectly good facilities that continue to serve their purpose well.

In others, however, we are seeing:

• Interest margins materially above market rates
• Conservative LTVs that could potentially be improved today
• Restrictive repayment structures
• Facilities nearing expiry without a clear refinancing strategy

For trustees and directors, financing arrangements should not simply be viewed as “done” once a facility is in place. Debt requires ongoing oversight.

This is particularly relevant where structures hold international assets, investment portfolios, operating businesses, development assets or high value real estate across multiple jurisdictions.

In today’s environment, reviewing existing arrangements can produce meaningful savings and improved flexibility. Equally important, a review process may confirm that the existing arrangement remains competitive, which itself can provide comfort from both a governance and fiduciary perspective.

At Convici Capital, we work with private clients, family offices and fiduciary structures globally to review and optimise existing debt arrangements. With lending criteria changing rapidly across many institutions, and refinancing risk becoming increasingly important over the next 12–24 months, now is an appropriate time for many structures to revisit their financing arrangements.