Completion of refinancing

RNS Number : 9731X

Taylor Wimpey PLC

15 December 2010

 



15 December 2010

Taylor Wimpey plc

Completion of refinancing

Taylor Wimpey is pleased to announce that it has completed the refinancing of its existing debt facilities, ahead of the timetable indicated in our IMS dated 16 November 2010.  The Company has repaid and cancelled its existing credit facilities and redeemed its outstanding Private Placement Notes and Eurobonds, all of which were due to mature in July 2012. 

Pete Redfern, Group Chief Executive, commented:

"We are very pleased to have completed this refinancing well ahead of schedule.  This new, simplified debt structure provides the Company with an extended maturity profile, achieved on normal commercial terms.  We now have greater operational flexibility and an enhanced ability to deliver our strategic priorities including further margin improvement."

Simplified debt structure with extended maturity profile

The new facilities provide the Company with a simplified £1.3 billion debt structure and an extended maturity profile, as summarised below:

·     £950 million revolving credit facility with an interest rate of LIBOR plus a margin varying between 225 and 375 basis points according to the Company's gearing level.  £350 million of this facility matures in July 2012, with the remaining £600 million maturing in November 2014

·     £100 million term facility with an interest rate of LIBOR plus a margin of 450 to 500 basis points maturing in June 2015

·     £250 million Senior Notes with a coupon of 10.375% maturing in December 2015

Better blended interest rate

The new facilities will result in a blended interest rate of around 8% based on expected gearing and LIBOR levels.  This is a significant improvement on the blended rate of the previous facilities, which stood at approximately 11% for the first half of this year.

Greater operational flexibility

The covenants associated with the new facilities are in line with normal commercial terms and remove a number of the operational restrictions of the previous facilities.  This significantly increases our flexibility with regard to future operational decisions and, in particular, there is no longer a specific restriction on new land acquisitions.

Accounting treatment

The refinancing costs of circa £115 million, including the break costs for the existing debt facilities of £84 million, will be recorded in the income statement and cash flow statement for the Company's 2010 financial year.  The previously announced one-off pension deficit reduction payment of £75 million will also be recorded in the cash flow statement for this period.

Next market update

Taylor Wimpey will issue its year-end trading update on 18 January 2011.

-ends-

For further information please contact:

Taylor Wimpey plc                                                                  Tel: [phone]

Pete Redfern, Group Chief Executive

Ryan Mangold, Group Finance Director

Jonathan Drake, Investor Relations

Finsbury                                                                                  Tel: [phone]

Faeth Birch

Andrew Dowler

Notes to editors:

Taylor Wimpey plc builds homes primarily in the UK, North America and Spain. It aims to be the homebuilder of choice for customers, employees, shareholders and communities.

For further information, please visit the Group's website:

www.taylorwimpeyplc.com

 

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