Cairn refinances debt facilities to fund new homes growth

Housebuilder agrees €350m deal which will cut its costs and lengthen maturity of debt

Cairn is set to report on the first half of its financial year on September 4th. Photograph:   Nick Bradshaw

Cairn is set to report on the first half of its financial year on September 4th. Photograph: Nick Bradshaw

 

Irish housebuilder Cairn Homes said on Thursday that it has refinanced its existing debt facilities and agreed a new private placement which will cut its debt costs and extend the maturity profile of its debt.

The construction group has refinanced its existing €200 million senior debt facility with Allied Irish Banks and Ulster Bank into a new €277.5 million term loan and revolving credit facility with the two banks, as well as Barclays Bank Ireland, maturing December 2022.

In addition, Cairn said it has completed a €72.5 million private placement of loan notes with Pricoa Capital Group, which will mature between 2024 and 2026.

Continued growth

The new facilities are secured by a corporate level debenture.

Tim Kenny, group finance director of Cairn, said: “We are delighted to have put this substantial and flexible new debt facility in place and continue our strong relationship with AIB and Ulster Bank, as well as building on our banking partners with the addition of Barclays and Pricoa. The new facilities will support the continued growth of our business as well as reducing our finance costs and extending the maturity profile of our debt.”

Philip O’Sullivan, economist with Investec, said Cairn’s decision to extend the maturity profile its borrowings at an indicated lower cost is a “prudent move”.

Cairn is set to report on the first half of its financial year on September 4th.