Taylor Wimpey Completes Debt Deal

Fri, 01 May 2009

Taylor Wimpey has announced it has finally completed the refinancing of its £1.55bn debt, easing concerns over its future.

The troubled housebuilder said the debt restructure will give the group ‘secure and substantial financial facilities’ totalling £2.47bn until July 2012.

The company was reliant on the approval of holders of the £250m eurobonds which mature in 2012, and holders of the £200m of eurobonds maturing in 2019.

However, the group also published financial results for 2008 showing a pre- tax loss of nearly £2bn.

The loss, hugely exacerbated by £1.9bn in write-downs of the value of its land-holdings, compares to a loss of £196m last year, and comes off revenues of £3.46bn, down 12 per cent from 2007.

Chairman Norma Askew commented: "2008 was an exceptionally difficult year for all housebuilders, including Taylor Wimpey ."

"The complex financing discussions that we initiated have now been successfully concluded. With a solid financial platform now secured, we are focused on delivering value for shareholders over the medium term."

Chief executive Pete Redfern said the underlying strength of the business was "severely tested" during 2008.

But he added: "Having put in place an appropriate financing package, Taylor Wimpey can face the challenges that 2009 will inevitably bring with significant confidence. We are now well placed to take advantage of the opportunities that an upturn will provide."
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