Amendment of Banking Facility

RNS Number : 4580S

Quintain Estates & Development PLC

19 May 2009

 



19 May 2009

Quintain Estates & Development plc

('Quintain' / 'Company')

QUINTAIN AMENDS SHORT TERM BANKING FACILITY

Quintain Estates & Development plc announces that, following the statement on 19 March 2009 regarding its short term facility with Barclays Bank, the commitment and maturity of this facility have now been extended. 

The Barclays facility will now mature on 30 April 2013 rather than 30 April 2011. The commitment has been increased to £50 million with amortisation down to £35 million by April 2011. All other terms match those agreed with the Group's relationship banks as announced to shareholders on 10 March 2009. However, in addition, Barclays has agreed that where disposals are made below cost, Quintain can elect for the loss not to be taken into account for interest cover purposes, in return for the proceeds being used to repay and pro-rata cancel facilities. 

The maximum gearing limit of all Quintain's bilateral facilities has now been re-set to 150% from 110% with a stepped margin, giving the Company significant flexibility within a cost effective financing structure.

Rebecca Worthington, Quintain's Finance Director, commented:

'The extension of this agreement completes Quintain's re-setting of its gearing covenant arrangements, as part of its broader ongoing financing strategy. The resulting enhancement of the Company's liquidity and maturity profile provides significant additional flexibility as it manages the impact of current economic conditions.'

The Company was advised by Lazard.

For further information please contact:

Quintain Estates & Development plc

Rebecca Worthington / Cressida Eccleston

Tel:    [phone]

Financial Dynamics

Stephanie Highett / Dido Laurimore / Laurence Jones

Tel:    [phone]

Lazard & Co., Limited, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Quintain and for no one else in connection with matters referred to in this announcement and will not be responsible to any person other than Quintain for providing the protections afforded to customers of Lazard & Co., Limited or for providing advice in relation to the matters described in this announcement.

Forward looking statements

This announcement is for information purposes only and it may contain certain forward looking statements. By their nature forward looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes of results expressed or implied by such forward looking statements.

Any forward looking statements made by or on behalf of Quintain speak only as at the date they are made and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. Quintain does not undertake to update forward looking statements to reflect any changes in Quintain's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.

Information contained in this announcement relating to the Company should not be relied upon as an indicator of future performance.

 

END

 

 

MSCDVLFFKEBXBBX