Redrow secures £300m via Covid Financing Facility

Flintshire-based house builder Redrow plc said on Thursday it has been confirmed as an eligible issuer for the UK’s Covid Corporate Financing Facility (CCFF) with a £300 million limit.

“The facility is currently undrawn,” said Redrow.

Redrow shares rose about 10% on Thursday, having fallen about 50% in the past month.

The house builder added in a stock exchange statement: “Negotiations for the additional £100m of headroom under the group’s existing Revolving Credit Facility (RCF) with its six relationship banks are progressing well and the documentation is expected to be concluded by the end of April.

“This will result in the existing RCF increasing from £250m to £350m. A further update will be provided in due course.”

About 80% of the firm’s workforce has been furloughed under the Government’s Job Retention Scheme.

Redrow’s board and directors volunteered to take a 20% cut in salary for the duration of the crisis.

Redrow executive chairman John Tutte said: “The response from colleagues and customers during these unparalleled times has been magnificent and I am grateful for their continuing support and understanding.

“The positive progress we have made on securing additional banking facilities means we can now finalise plans for our valued workforce and supply chain, to make an orderly return to work when we are advised it is safe to do so”.

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