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Keepmoat Homes Signs Agreements to Re-finance its Existing Facilities

27 November 2018

Keepmoat Homes has signed agreements to refinance its existing facilities.  The new facilities offer improved terms including lower interest cost and increased financial capacity.  The facilities underpin the Company’s 5-year business plan.

The new funding structure comprises:

  • Senior Term Loan - £150m facility, at an interest cost of 7.5% (6.5% + LIBOR with 1% floor), for a 6-year term
    • This replaces the £100m of senior notes (or "bonds") with a coupon of 9.5%
  • Senior Secured Revolving Credit Facility - of £55m, at an interest cost of 2.5-3.25% + LIBOR, for a term of 5.5 years
    • This replaces the existing super senior revolving credit facility of £75m at 3-3.75% +LIBOR

James Thomson, Chief Executive of Keepmoat Homes, said: “This is an extremely positive step forward and reflects the confidence of our lenders in our business. We have a strong balance sheet and pipeline of some 32,000 plots and our new facilities will help us increase the supply of homes across the country.  Last year we delivered 3,717 new homes for first time buyers, for affordable rent and for the PRS market.  Two thirds of our buyers are under the age of 35 and our average house price last year was £149k. This year we are looking to deliver over 4,200 much needed quality homes across the UK and I am very proud of the part we are playing to build the homes people need and can afford.”

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