VTY Vistry Group Plc

 
TIDMBVS 
 
 

  Bovis Homes Group PLC 

  New Banking Facilities Agreed 

  27th January 2010 

  Bovis Homes Group PLC is pleased to announce that it has signed a new banking deal, entering into a circa 4 year GBP150 million committed revolving credit facility expiring in September 2013. This new facility replaces the Group's previous facility. The facility syndicate comprises 5 banks, of which 4 are existing relationship group banks and one is a new entrant. The facility includes a covenant package featuring three covenants tested semi-annually as per the previous facility agreement with an option for the Group to switch from a cash interest cover test to a profit interest cover test. 

  With the improvement in the housing market since the previous facility was negotiated in the final quarter of 2008 and the very strong balance sheet of the Group, with GBP113 million of net cash in hand at 31 December 2009, the terms of the new deal are a substantial improvement on the Group's previous facility. Given current LIBOR rates and anticipated levels of gearing, the Group's cost of debt is expected to be circa 2.9% during 2010, decreasing to circa 2.5% in 2011. The Group has paid circa GBP2 million of arrangement fees and associated costs which will be charged to the income statement over the term of the facility. Commitment fees will also apply at normal commercial rates. 

  The new deal provides the Group with a banking facility with the financial flexibility to allow it to benefit from its strong balance sheet by continuing the process of re-investment in residential land thus increasing the output capacity of the Group. Together with a reduction in its effective interest cost and an increase in facility duration, this flexibility provides the Group with a more appropriate banking facility during an important period of investment for the Group. 

 
Enquiries:         Bovis Homes Group PLC 
                   David Ritchie, Chief Executive 
                   Neil Cooper, Group Finance Director 
                   Tel: 0207 321 5010 
                   Shared Value Limited 
                   Emily Bruning / Andrew Best 
                   Tel: 07773 012 971 / 07798 576 378 
 
 
 
 
 
 
 

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