Last checked at 12 Aug 2013 07:00
12 August 2013
Taylor Wimpey plc
Successful completion of refinancing
Taylor Wimpey is pleased to announce that it has completed the refinancing of its revolving credit facility, due to mature in November 2014, with a new revolving credit facility for £550 million to mature in August 2018.
Ryan Mangold, Group Finance Director, commented:
"We are very pleased to have completed this refinancing well ahead of schedule. The new debt facility will provide ample headroom to deliver our strategic objectives whilst reducing our finance costs. This provides us with a solid base to further optimise our capital structure later this year with the repayment of the Senior Notes, creating a more efficient debt structure by the end of the year and positioning the Group well for the future."
Since we set out our strategy in September 2011, the Group has reduced net debt by over 40% to £68.4 million as at 30 June 2013 (31 December 2011: £116.9 million).
As indicated at our half year results in July, it remains our intention to prepay the remaining £149.4 million of our £250 million 10.375% Senior Notes on their first call date of 31 December 2013 at a prepayment premium of 5.1875%. Following repayment of these Senior Notes, the maturity date on our £100 million term loan extends to 2020 resulting in total committed debt facilities of £650 million with an average maturity of 4.7 years. Before amortisation of arrangement fees, and based on our expected level of borrowings that average higher due to intra period working capital demands, we estimate our net finance cost to be nearly 50% lower next year.
The Group strategy remains focused on the key financial objectives of margin improvement, increasing net asset value and return on net operating assets.
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For further information please contact:
Taylor Wimpey plc Tel: +44 (0) 1494 558323
Ryan Mangold, Group Finance Director
Debbie Sempie, Investor Relations
RLM Finsbury Tel: +44 (0) 20 7251 3801
Faeth Birch
Sarah Heald
Notes to editors:
Taylor Wimpey plc is a UK-focused residential developer which also has operations in Spain. Our vision is to become the UK's leading residential developer for creating value and delivering quality.
For further information, please visit the Group's website:
http://plc.taylorwimpey.co.uk