Rotherham-based land developer Harworth Group plc announced that it has signed a new £275 million Revolving Credit Facility (RCF) with NatWest, Santander and HSBC.

“It includes an uncommitted accordion option, which if exercised would take the RCF to £325 million,” said Harworth.

“The facility has an improved core margin of 200 basis points over SONIA, with an initial four-year term, which may be extended to a maximum of five years at Harworth’s request, subject to bank consent.

“The syndicate comprises Harworth’s existing relationship banks, NatWest, Santander and HSBC, with the option to add further lenders.

“The new facility replaces Harworth’s existing £240 million facility and extends the Group’s debt maturity by approximately 2.5 years.”

Harworth CFO Kitty Patmore said: “We have been able to take advantage of favourable market conditions, and the strong relationships we have with our core blue-chip banking partners, to refinance our RCF on improved terms.

“It extends the duration of our bank facilities to the end of 2029, reduces our costs and provides increased flexibility to invest in our pipeline of sites, as we look to optimise our balance sheet.

“Our target net loan-to-portfolio value of below 20% at year-end and 25% throughout the year remains unchanged.”