Taylor Wimpey hires Rothschild for refinancing deal

Taylor Wimpey has hired NM Rothschild to negotiate a covenant waiver with its lenders.

Following in the footsteps of similar moves by Barratt Developments earlier in the month, Rothschild will attempt to secure a re-financing deal with help from Taylor Wimpey’s existing advisors.

The housebuilder is struggling under debts of £1.7bn and has warned it risks breaching its banking covenants within the next seven months.

According to the Daily Telegraph, Taylor Wimpey is unlikely to reach a deal with lenders before its interim trading result statement on 27 August.

A resolution is expected by the end of September.

A large pension liability at the housebuilder was said to be preventing shareholders from agreeing a £500m emergency bail-out via a private share placement with institutional investors.