Taylor Wimpey completed its refinancing negotiations today after the company’s Eurobond holders voted to accept the £2.5bn deal to resolve the issues surrounditng its existing £1.57bn debt.
The financial deal, which sees the existing debt agreement extended to July 2012, means the housebuilder is less likely to have to turn to shareholders for an equity raising, and will avoid breaching banking covenants.
After the announcement the group’s shares rose by 6.7% to 47.5p.
At the same time the housebuilder published its results for the year ended 31 December 2008, revealing a pre-tax loss of £1.97bn.
The figure, which includes land and work in progress write-downs of £1bn, is down from a profit of £346.1m in 2007.
Release of the results had been delayed while the refinancing package was negotiated.
Completions for the year stood at 13,394 units (down from 14,862 in 2007), while 1,138 unsold completed homes remained on its books at the end of December 2008, along with forward sales of £562m (2007: £1.1bn).
Taylor Wimpey, which closed 13 offices in 2008 and another three in early 2009, also completed its planned exit from the construction business with the sale of Taylor Woodrow in September 2008. It has also just sold its business in Ghana.
Nevertheless, the housebuilder sounded an optimistic note for the future, saying that: “recent trading in the
Pete Redfern, group chief executive, said: “The underlying strength of our business was severely tested during 2008. We responded quickly to the downturn in the
“Having put in place an appropriate financing package, Taylor Wimpey can face the challenges that 2009 will inevitably bring with significant confidence.
“We are now well placed to take advantage of the opportunities that an upturn will provide.”
