Redrow secures extra £100m headroom from banks

Flintshire-based house builder Redrow plc on Monday provided a further update on actions it is taking to mitigate the impact of the Covid-19 pandemic on its business.

“Further to the statement on 9 April that Redrow has been confirmed as an eligible issuer for the Covid Corporate Financing Facility with an issuer limit of £300m, we are pleased to announce Redrow has also now successfully concluded negotiations with its six relationship banks regarding the request for £100m additional funding under its existing Revolving Credit Facility (RCF).

“The company now has £350m of committed facilities under the RCF which matures at the end of December 2022.”

Redrow also said: “As a consequence of the unprecedented impact of COVID-19 on the business and the housebuilding industry, (executive chairman) John Tutte has agreed to delay the step back to non-executive chairman from 30th June until the company’s AGM in November 2020.

“John will support the senior management team to ensure an orderly return to operations when the business is satisfied it is safe to do so. 

“It remains John’s intention to retire from the board ahead of the AGM in 2021. 

“As previously announced, Matthew Pratt will take up the position of Group Chief Executive with effect from 1st July 2020.”