Bellway has confirmed it has entered into a contract to issue a US private placement totalling £130m.
The housebuilder said it planned to fully draw down the debt, which has maturity dates in seven and 10 years and a weighted average fixed coupon of 2.7%, from 17 February.
The firm added that the new funding would have similar covenants to those within its existing banking agreements.
The business had net cash of £242.9m at 29 November and undrawn bank facilities of £495m, which expire in tranches up to 31 December 2023. Net debt stood at £45.7m on 24 November.
Bellway said the new funding would provide it with “longer term access to capital as the net assets of the group continue to grow”.
In a trading update, the firm also reported its order book stood at 6,186 homes with a value of £1.77bn. It said there is strong underlying demand for new homes, with a 6% increase in the reservation rate to 210 per week (1 August 2019 to 24 November 2019 – 199 per week).
Jason Honeyman, chief executive of Bellway, said: “Bellway is in a robust position and, notwithstanding the recent widespread lockdown restrictions throughout the country, sales demand is encouraging, and the order book is strong. We have substantial cash resources, considerable ability to continue investing in land and with our solid operational structure, we are determined to return the group to its strategy of delivering long-term and sustainable growth.”
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