RENEGOTIATION & EXTENSION - B

RNS Number : 0733O

Persimmon PLC

02 March 2009

 



Persimmon PLC  

2 March 2009  

RENEGOTIATION AND EXTENSION OF BORROWING ARRANGEMENTS 

In the Trading Update on 8 January, Persimmon stated that it had commenced discussions for the planned refinancing of the Group's credit facilities. 

Persimmon now announces that it has successfully agreed new terms and conditions with its banking partners and private note holders for the amendment of its existing credit facilities.  The full documentation is currently in the process of being finalised, and a further announcement will be made when it has been signed.  We have also agreed terms for a new Forward Start Banking Facility of £322 million which matures on 31 March 2012. Taken together, we will have committed funding lines of £1,085 million at the outset, reducing to £560 million during 2011. 

As a result of the above, our estimated blended interest rate will be c. 6.4%, an increase of c. 2.8% on previous arrangements.  

The covenants associated with these new facilities are appropriate for the current market conditions and our strategy of focusing on cash generation. These include cash flow based interest cover, minimum net worth and total gearing based measures. 

We expect these new facilities to provide ample headroom and support for the effective management of the business over the next few years.

For further information, please contact:  

Persimmon plc                                                       [phone]  

Mike Farley, Group Chief Executive         

Mike Killoran, Group Finance Director        

M: Communications  

Edward Orlebar:                         [phone] / [phone]  

Charlotte McMullen:                   [phone] / [phone]  

Marylene Guernier                     [phone] / [phone]  

 

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