Travis Perkins gets £550m new funding
Published: 19 December, 2011
NORTHAMPTON: Travis Perkins has signed a new £550m Forward Start Banking Agreement with a syndicate of banks led by Barclays Corporate, Lloyds TSB Bank and The Royal Bank of Scotland.
The £550m facility, which can be drawn from April 2013, the expiry date for the Group's existing £800m facility agreement, runs until December 2016, and is at a level that provides the Travis Perkins Group with the bank funding it requires for the foreseeable future.
The new agreement will increase the group's funding costs in line with changes that have occurred in the market since the last financing agreement was signed in 2008. As a result it is anticipated that the Group will incur additional financing costs of around £4m in 2012.
The existing facility, which currently totals £800m, continues until April 2013 with further amortisation repayments of £29m in both April 2012 and October 2012.
News of the deal has seen Travis shares flat in morning trading at 769.5p. Over the year to date Travis Perkins shares are down 27%.