Taylor Wimpey In Early Talks To Refinance Debt Package-Source

12th Jul 2010 11:10

By Anita Likus Of DOW JONES NEWSWIRES LONDON (Dow Jones)--U.K. volume house builder Taylor Wimpey PLC (TW.LN) is in early discussions with its lenders to refinance its debt package again, a person close to the situation said on Monday. Taylor Wimpey has started talking to its lenders early and wants to negotiate new cash covenants, to allow it to spend money more freely in case there is a better land market, as well as to extend the duration of debt, the person said. The company already refinanced its bonds and bank loans last year, in a GBP1.5 billion debt restructuring, which gave it new debt maturities of July 2012. These also have restrictions on how cash is used. The 2012 and 2019 bond holders could be part of the discussions as well. Taylor Wimpey started the talks, which are expected to be long and complex, to understand the current market, the person said. The talks were expected as the company said at its results in March that it would review the scope and timing of refinancing. Chief Executive Pete Redfern also said at the time that he would not be able to buy sufficient land to replenish is land bank. -By Anita Likus, Dow Jones Newswires; +44 20 7842 9407; [email protected] (END) Dow Jones Newswires July 12, 2010 06:10 ET (10:10 GMT)