Construction News

Thu June 17 2021

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New finance deal for Barratt

15 May 13 Housebuilder Barratt Developments has reached separate agreements for a comprehensive refinancing with improved terms.

It has negotiated committed borrowing facilities of £850m, with maturities ranging from 2016 to 2021, and without the historic high interest rates to which Barratt had previously been tied.

It has also cashed in part of the shared equity portfolio to use the proceeds to buy land.

Group Finance Director David Thomas said: "We are delighted to have agreed this comprehensive refinancing package ahead of schedule which will provide us with more appropriate lending facilities, in terms of both interest cost and duration. It reflects our improved financial position and the significant progress we've made towards our target of zero net debt as at 30 June 2015.

“The monetisation of the shared equity portfolio is in line with our strategy and represents another self-help measure to improve profitability, reduce net debt and increase return on capital employed. The fact that we've been able to conclude this deal now is further evidence of the improving outlook for the sector."

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