Housebuilder ditches high interest placement notes and interest rate swaps

money cash

Housebuilder Barratt has secured a £850m refinancing package, a year ahead of schedule.

The refinancing includes the early repayment of private placement notes and the cancellation of interest rate swaps, both of which were at “considerably higher interest rates than are available today”, Barratt said.

The package provides the housebuilder with around £850m of committed facilities including a new £700m revolving credit facility.

As a result of its “much-improved” financial performance, the group has undertaken the refinancing, which was required by June 2014, a year ahead of schedule.

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.