Barratt seals refinancing deal with banks

Barratt has announced that the refinancing package agreed with its banks has now been signed and come into effect.

The package, which was first revealed by Building seven weeks ago, will see the banks relax lending covenants that the housebuilder feared might be breached as a result of the market downturn.

A company statement said: “Under this documentation, the interest cover covenant is replaced with a cash-flow covenant and the gearing and minimum tangible net worth covenants are relaxed.

“As anticipated, this final documentation also extends the maturity on Barratt's existing £400m revolving credit facility from February 2010 to July 2011.”