Housebuilder sets up fresh banking covenants and new £322m facility

Housebuilder Persimmon has completed the refinancing deal it announced at the beginning of the month.

The move will see the company operate within fresh banking covenants and it has a new facility of £322m that runs until March 2012.

The company, which has estimated debt of £600m, now has committed funding lines of £1.085bn, reducing to £560m during 2011.

The new estimated interest rate for the deal is about 6.4%, an increase of 2.8 percentage points on previous arrangements. Persimmon did not disclose what the arrangement fee would be.

Persimmon homes
The company now has committed funding lines of £1.085bn