Taylor Wimpey begins £250m bond offering

Marion Dakers
HOUSEBUILDER Taylor Wimpey rounded off its refinancing plan yesterday by announcing a new £100m debt facility and plans to sell £250m of five-year bonds.

The news follows on from the firm’s £950m credit facility, which was announced last week as the last act by outgoing chief financial officer Chris Rickard.

Prudential’s M&G UK Companies Financing Fund will provide the company’s £100m facility.

The company has applied for a credit rating from Moody’s and Standard & Poor’s (S&P). S&P yesterday gave the firm a B+ rating for its bond issue, with a negative outlook due to uncertain market conditions.

“We are likely to lower the rating if the company does not refinance its debt before July 2011 at the latest, or if the company does not manage its debt leverage very carefully while acquiring new land,” said S&P analyst Maxime Puget.

The firm rejigged its debt last week in an effort to gain more flexible terms. Chief executive Pete Redfern said its new structure lifted conditions on buying new land.

Shares closed up 3.3 per cent at 25.3p yesterday.



TAYLOR Wimpey’s bond issue will be coordinated by Royal Bank of Scotland’s corporate broking branch Hoare Govett and Barclays Capital, while Lloyds TSB Corporate Markets and HSBC will act as bookrunners.

Antonia Rowan is a managing director of RBS Hoare Govett, and has been with the firm since 1999 when she joined from Merrill Lynch. She acted as joint broker for Taylor Wimpey’s predecessor George Wimpey when it merged with Taylor Woodrow in 2007, and has also worked with Tate & Lyle, Wolseley and Wm Morrison. She is joined by Hoare Govett managing director Iain Leigh-Pollitt.