Taylor Wimpey has secured £100m from the fund management arm of the Prudential, which moves it closer to the £350m it needs to raise to complete a refinancing deal announced last week
The troubled housebuilder told the City on 16 November that it had agreed a £950m credit facility with banks to cover a £720m debt mountain, but that it was dependent on finding a further £350m from the private or public money markets.
The £100m was secured from M&G, the fund management arm of insurance giant Prudential, from a fund designed to plug the gap after bank lending dried up following the credit crunch.
Once the £350m is raised and the refinancing deal sealed, bank restrictions on the purchase of new land will be lifted.
The housebuilder plans to raise the other £250m by selling five-year bonds to the market. Chris Millington, an analyst at Numis, said this should be completed at the beginning of next year.
Since it announced its refinancing deal, Taylor Wimpey’s share price has edged down slightly from 26.3p to 24.4p.
In its half year results released in August, Taylor Wimpey made £19.6m on revenues that had increased 8% to £1.22bn.