McCarthy & Stone has agreed a new £200m bank facility to replace the debt it took out with its shareholders last year.
The five-year £200m revolving credit facility has been provided by Barclays, HSBC, RBS and Santander and replaces a £160m term loan agreed last year as part of a major refinancing with the shareholders of the retirement housebuilder.
In August 2013, McCarthy & Stone’s backers, which include Goldman Sachs and TPG, pumped £367m of fresh equity into the business to pay down its debt pile, while at the same time refinancing £160m of outstanding debt with a five-year loan.
McCarthy & Stone chief finance officer Nick Maddock said the new facility provided a more flexible and efficient debt structure.
“We are very pleased to have agreed this financing with our new banking partners,” he said. “The revolving credit facility provides a flexible and efficient debt structure which will help support the group in its next phase of growth, with the attractive terms agreed reflecting McCarthy & Stone’s leading market position.
“The new facility delivers on one of our stated objectives to bring our capital structure and financing costs in line with our housebuilding peer group and ensures we have the appropriate platform to underpin further growth through this financial year and beyond.”
Rothschild advised the group on the facility.