Redrow agrees £250m finance package

HOUSEBUILDER Redrow has agreed a £250m facility with a syndicate of five banks.

The group, based at Ewloe near Chester, said the four-and-a-half year revolving credit facility replaces a £50m debt agreement.

In a brief stock market statement it said: “This larger facility gives the group debt capacity for further investment in land as it continues to grow. 

“Both the upfront and ongoing costs of the new facility are lower than the previous facility, while the covenant package remains unchanged.”

The five banks are: Barclays, The Royal Bank of Scotland and HSBC, which already work with Redrow, and Lloyds Bank Commercial Banking and Santander.

In July the group said sales had reached £604m in the year to June. Full annual figures are expected next week.