Persimmon Homes has completed the refinancing deal it announced at the beginning of the month
The move will allow the company to operate within relaxed banking covenants and gives it a new facility of £322m to use until March 2012.
Persimmon, which has estimated debt of £600m, now has a committed overdraft facility of £1.1bn, reducing to £560m during 2011.
The estimated interest rate for the deal is about 6.4%, a rise of 2.8 percentage points on prior arrangements. Persimmon did not disclose what the arrangement fee would be.
Mike Farley, its chief executive, recently said the deal would provide the business with “a solid platform” and avert the need for a rights issue to shore up its balance sheet.