Irish housebuilder Cairn Homes has completed a debt refinancing of its existing €200m (£179.7m) senior debt facility into a new €277.5m term loan and revolving credit facility with Allied Irish Banks, Ulster Bank Ireland and Barclays Bank Ireland.
As well as refinancing the initial debt facility with Allied Banks and Ulster Bank, Cairn has also completed a €72.5m private placement of loan notes with Pricoa Capital Group. The agreements grow Cairn’s total debt facilities from €200m to €350m (£314m).
The term loan and revolving credit facility mature in December 2022 and the loan notes mature between 2024 and 2026. The new facilities are secured by a corporate level debenture.
The company has said it is looking to further build its land bank and pipeline of new houses to meet an “increase in demand for new homes” due to a number of large international financial services firms announcing job relocations from London to Dublin in preparation for Brexit. Cairn will deliver its half-year update on 4 September.
In June, Cairn agreed a deal to sell its part-built mixed-use development at Hanover Quay in Dublin to a special purpose vehicle managed by Irish fund manager Carysfort Capital for €101m.
Tim Kenny, group finance director of Cairn, said: “We are delighted to have put this substantial and flexible new debt facility in place and continue our strong relationship with AIB and Ulster Bank, as well as building on our banking partners with the addition of Barclays and Pricoa. The new facilities will support the continued growth of our business as well as reducing our finance costs and extending the maturity profile of our debt.”
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