McCarthy & Stone has secured a five-year £200m revolving credit facility from Barclays, HSBC, RBS and Santander. It is repayable in full in December 2019.
The facility replaces an existing £160m term loan and provides the company with working capital flexibility to support growth plans.
McCarthy & Stone’s strategy is to create an efficient and scalable business capable of building and selling more than 3,000 units per annum over the medium term.
Group chief financial officer Nick Maddock said: “The revolving credit facility provides a flexible and efficient debt structure which will help support the group in its next phase of growth, with the attractive terms agreed reflecting McCarthy & Stone’s leading market position.”
McCarthy & Stone generated pre-tax profit of £63.2m for 2013/14, before exceptional items and amortisation of intangibles, up from £12.5m the previous year. Legal completions were up 10% to 1,677 (2013: 1,527).
Mr Maddock added: “The new facility delivers on one of our stated objectives to bring our capital structure and financing costs in line with our housebuilding peer group and ensures we have the appropriate platform to underpin further growth through this financial year and beyond.”
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