QUINTAIN AMENDS EXISTING FINA

RNS Number : 5833O

Quintain Estates & Development PLC

10 March 2009

 



10 March 2009 

Quintain Estates & Development PLC

('Quintain' / 'Company' / 'Group')

QUINTAIN AMENDS EXISTING FINANCING ARRANGEMENTS

Quintain Estates & Development PLC announces that, as part of its corporate financing strategy, it has agreed a cost effective arrangement with its main relationship banks, retaining flexibility in its debt facilities whilst relaxing its maximum permitted gearing covenant. As detailed below, this new arrangement significantly increases the gearing headroom available to the Company for the next three years.

The new arrangement applies to the gearing limits in the five and six year bilateral facilities entered into by the Company in March 2008 totalling £620 million, of which £460 million is currently drawn with a further £120 million currently available. The Company is compliant with its covenants but considered it important to secure the option to relax its gearing limit in the current uncertain economic environment.

The terms of the new arrangement enable Quintain over the next three years to elect to raise its gearing limit from 110% to 150% of the consolidated tangible net worth of the Group ('Consolidated Net Worth') for an annual fee of 1% of the commitment. This annual fee will be excluded from the interest cover calculation. In the event that the Company elects not to increase its gearing limit in any particular year, the current average margin of 1.15% will increase thereafter by only 0.25% per annum.  Further increases to the margin (between 0.85% and 2.35% per annum dependent on the level of gearing) and commitment fees (to half the applicable margin) will apply only if gearing rises above 110% of Consolidated Net Worth. The additional headroom will only be used to absorb further falls in valuation that may occur.

Rebecca Worthington, Quintain's Finance Director, commented:

'This simple, cost effective arrangement provides flexibility to the Company during these volatile times.'  

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]

Forward looking statements

This document 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 for 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 circumstance on which any such statement is based.

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

 

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