Last checked at 2 Mar 2009 07:00
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 +44 (0) 1904 642 199
Mike Farley, Group Chief Executive
Mike Killoran, Group Finance Director
M: Communications
Edward Orlebar: +44 (0) 207 153 1523 / +44 (0) 7738 724 630
Charlotte McMullen: +44 (0) 207 153 1549 / +44 (0) 7921 881 800
Marylene Guernier +44 (0) 207 153 1269 / +44 (0) 7776 303 788