Quintain has renegotiated its £95m short-term loan facilities to add to the headroom it gained last week.
The listed developer and fund manager has extended the repayment date for a £95m loan with Barclays by a year to 30 April 2011 and has reduced facility to £35m.
This has enabled the company to elect to raise its gearing from 110% to 150% - on the condition that its gearing is below 110% at 31 March.
It follows the renegotiation of £620m of medium term debt which it renegotiated last week to secure three years' headroom ‘to absorb further falls in valuation that may occur’.
The refinancing deal followed its confirmation yesterday that it was considering an equity raising.
It has been reported that Quintain is looking to raise £100m through a placing and open offer.
The company’s shares rose 5.8% this morning to 22.75p.