Persimmon, one of Britain’s biggest house builders, has re-negotiated the terms of its existing debt and acquired new banking facilities as the sector struggles to cope with the falling property market.
Persimmon, which releases full-year results today, said it had agreed on new terms with its banking partners and private note holders, bringing its total credit facilities to slightly more than £1bn.
However, the house builder will have to pay interest rates on the loan that are 75% higher than before.
'We expect these new facilities to provide ample headroom and support for the effective management of the business over the next few years,' the company said.
The total funding amounts to £1.01bn at the outset, reducing to £560m during 2011.
Financial Times, The Times, Daily Telegraph