Taylor Wimpey cuts costs through a bond buyback

HOUSEBUILDER Taylor Wimpey is expected to save approximately £8.3m in debt interest costs on an annual basis after drawing strong demand for a buyback offer on its outstanding 10.4 per cent bond maturing in 2015.

The company announced yesterday it would buy back £82.4m of the outstanding £250m bond.

It had initially set out to buy back around £60m of the bond when it launched the tender offer last week, but received tenders amounting to £117.2m by the expiration of the offer, it said yesterday.

• Meanwhile, Crest Nicholson said yesterday it had strengthened its balance sheet after successfully completing a major debt restructuring. In all, £359m of its debt has been converted to equity.