Travis Perkins gets reduced banking facility from 2013
Travis Perkins, the builders merchant, has announced a new banking facility today, perhaps revealing how banks and, by extension major corporations, are having to deleverage.
Travis Perkins, the builders merchant, has announced a new banking facility today, perhaps revealing how banks and, by extension major corporations, are having to deleverage.
The new facility is worth £550m and becomes available in April 2013, when the firm's current £800m facility runs out. In other words Travis Perkins' overdraft is soon to get £250m smaller.
The syndicate of banks providing the new facility are led by Barclays Corporate, Lloyds TSB Bank and The Royal Bank of Scotland.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Travis Perkins is quite clear, the new agreement will "increase the group's funding costs" in line with the tightening credit market. Those additional costs are likely to hit £4m next year.
The agreement runs through to December 2016.
News of the deal has seen TPK shares flat in morning trading at 769.5p. Over the year to date Travis Perkins shares are down 27%.
BS
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Where are ISA savers and investors putting their money?
With less than three months until the end of the tax year, where are ISA savers and investors putting their money? We look at the latest ISA trends.
By Katie Williams Published
-
More than £53 billion held in fixed-rate cash ISAs will mature by April - where should savers move their money?
If your fixed-rate cash ISA is maturing soon, we look at the options available to you
By Ruth Emery Published