LONDON (dpa-AFX) - Barratt Developments plc (BDEV.L) announced that it has reached separate agreements for a comprehensive refinancing package and the monetisation of a portion of the Group's shared equity portfolio.
The refinancing provides the Group with around 850 million pounds of committed facilities to June 2016 and 650 million pounds to May 2018 with some of these facilities extending as far as 2021.
The company announced a new 700 million pounds committed bank RCF, reducing to 550 million pounds in June 2016 to reflect the Group's reduced borrowing requirements and maturing in May 2018.
The company said it will retain the $80 million of private placement notes that were issued in May 2011 and mature in August 2017, swapped into sterling equating to a 48 million pounds fixed-rate loan; and it will also retain the 100 million pounds term loan from The Prudential/M&G UK Companies Financing Fund that was drawn in July 2011, of which 25% is scheduled to be repaid in 2019, 25% in 2020 and the balance in 2021.
The Group's private placement notes that were issued in 2007 and 2008 (currently amounting to about 152 million pounds equivalent), together with the associated cross currency swaps, will be cancelled with effect from no later than 2 July 2013. The average interest payable on these notes is around 11.4%.
The interest make-whole will be an exceptional interest charge of about 53 million pounds in the income statement for the year ending 30 June 2013.
The Group said it will cancel 55 million pounds nominal value of interest rate swaps resulting in an exceptional interest expense charge of about 20 million pounds in the year ending 30 June 2013.
As at 31 December 2012, the Group had amounts receivable in respect of shared equity of 193.9 million pounds of which 129.6 million pounds related to the Group's shared equity and 64.3 million pounds related to the Group's participation in the UK Government's shared equity schemes.
The company said it entered into a joint venture, Rose Shared Equity LLP , with a fund managed by Anchorage Capital Group LLC. The Group's shared equity loans that originated in the period from 1 January 2009 to 31 December 2011 have been transferred to Rose.
Anchorage acquired a 50% interest in Rose for approximately 34 million pounds which was paid to the Group on closing. Anchorage will receive its initial investment back by way of preferred return and then the partners will share equally all subsequent cash proceeds from the portfolio.
The Group's net finance charge before exceptional costs for the financial year ending 30 June 2013 is expected to be about 72 million pounds, compared to 80.8 million pounds.
The company currently expects that the Group's cash interest cost for the financial year ending 30 June 2014 to be about 36 million pounds, including historic interest rate swap interest of about7 million pounds.
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