Bovis secures new loan deal

Bovis Homes said it had signed a new long-term banking deal that gave it significant financial flexibility and allowed it to build more houses.

The company has taken a £125m revolving credit facility expiring in March 2017 and a three year term loan of £25m.

The overall financing cost of the new arrangement is in line with its existing facility.

Group Finance Director, Jonathan Hill, said the new debt deal would allow the group to continue strong land investment to increase its output capacity, as well as manage its working capital requirements.

It replaces the firm's previous £150m revolving credit facility and comes from four banks with whom the firm has an existing relationship and one new bank.

The facility and the term loan include a covenant package featuring three covenants tested twice a year.