Statement re New Banking Facilities Agreed
Bovis Homes Group PLC
Bovis Homes Group PLC
New Banking Facilities Agreed
27th January 2010
Bovis Homes Group PLC is pleased to announce that it has signed a new
banking deal, entering into a circa 4 year £150 million committed
revolving credit facility expiring in September 2013. This new facility
replaces the Group’s previous facility. The facility syndicate comprises
5 banks, of which 4 are existing relationship group banks and one is a
new entrant. The facility includes a covenant package featuring three
covenants tested semi-annually as per the previous facility agreement
with an option for the Group to switch from a cash interest cover test
to a profit interest cover test.
With the improvement in the housing market since the previous facility
was negotiated in the final quarter of 2008 and the very strong balance
sheet of the Group, with £113 million of net cash in hand at 31 December
2009, the terms of the new deal are a substantial improvement on the
Group’s previous facility. Given current LIBOR rates and anticipated
levels of gearing, the Group’s cost of debt is expected to be circa 2.9%
during 2010, decreasing to circa 2.5% in 2011. The Group has paid circa
£2 million of arrangement fees and associated costs which will be
charged to the income statement over the term of the facility.
Commitment fees will also apply at normal commercial rates.
The new deal provides the Group with a banking facility with the
financial flexibility to allow it to benefit from its strong balance
sheet by continuing the process of re-investment in residential land
thus increasing the output capacity of the Group. Together with a
reduction in its effective interest cost and an increase in facility
duration, this flexibility provides the Group with a more appropriate
banking facility during an important period of investment for the Group.
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Enquiries:
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Bovis Homes Group PLC
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David Ritchie, Chief Executive
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Neil Cooper, Group Finance Director
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Tel: 0207 321 5010
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Shared Value Limited
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Emily Bruning / Andrew Best
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Tel: 07773 012 971 / 07798 576 378
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