黑洞社区

Taylor Wimpey is due to announce a relaxation of its lending covenants without the need for fresh equity, according to sources close to the talks between the housebuilder and its lenders 黑洞社区 can reveal

It is understood the company has struck the refinancing deal due to the recent improvement in housebuilders鈥� share prices and the fact Barratt recently clinched a similar agreement. Barring any last-minute hitches, it is expected to outline the deal at its results for the six months to 30 June 2008 next week.

The company has 拢1.7bn of debt and was expected to breach loan to value covenants in February. Last month it failed to raise 拢500m via a share placement after one investor backed out on the eve of the deal.

A source close to the talks said: 鈥淚t looks like they have conjured something quite good and resolved their issues. The most likely outcome now is an all-debt solution among the lenders.鈥�

Last month it appointed Rothschild to secure a similar deal to the agreement reached between Barratt and its lenders in July. The deal, revealed by 黑洞社区, saw covenants relaxed without the need for fresh cash.

The source added: 鈥淚nterest cover covenants will be turned into cashflow covenants in similar fashion to Barratt. The fact Persimmon called the bottom of the market on Thursday was also significant.鈥�

Taylor Wimpey was unavailable for comment.

The group had reportedly been in discussions with four private equity groups about taking a 30% stake in the company, an option which has now been put on hold according to sources close to the talks.

A source close to one of the interested private equity groups said: 鈥淭he message coming out of Taylor Wimpey in recent days is that it鈥檚 quite comfortable without the need for private equity cash.鈥�