Housebuilder Taylor Wimpey has completed the refinancing of its credit facilities, due to mature in November 2014, with a new facility for £550m maturing in August 2018.
The group’s debt reduction strategy reduced debt to £68.4m as of the end of June 2013 – a 40 per cent reduction compared with September 2011.
Debt had stood at £116.9m at the end of 2011.
In line with the wider housing market, Taylor Wimpey’s half-year profits jumped 42.1 per cent to £76.7m this year, while revenue climbed over £100m to £906.2m compared with a year before.
Group finance director Ryan Mangold said: “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 while 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.”
Taylor Wimpey is set to prepay £149.4m of £250m in Senior Notes on the first call date of 31 December 2013.
The group also has a £100m loan extending to 2020, bringing the total debt facility to £650m over 4.7 years.
Taylor Wimpey expects its net finance costs to be nearly 50 per cent lower next year before amortisation of arrangement fees, based on expected borrowing levels.