It 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.
The new facilities provide the company with a simplified £1.3bn debt structure and an extended maturity profile:
- £950m 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 - £350m of this facility matures in July 2012, with the remaining £600m maturing in November 2014
- £100m term facility with an interest rate of LIBOR plus a margin of 450 to 500 basis points maturing in June 2015
- £250m Senior Notes with a coupon of 10.375% maturing in December 2015
The new facilities will result in a blended interest rate of around 8% based on expected gearing and LIBOR levels. The company said that this was much better than the blended rate of the previous facilities, which was approximately 11% for the first half of 2010.
Taylor Wimpey said that the refinancing removed several operational restrictions of the previous facilities and increased its flexibility in operational decisions. In particular, there is no longer a specific restriction on new land acquisitions.
Group chief executive Pete Redfern said: "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."