Barratt refinancing deal signed off

The final documents that will see embattled housebuilder Barratt Developments restructure its banking covenants has been signed off and is now effective.

Barratt made the announcement in statement to the City earlier today. Under the terms of the deal the company's 'interest cover' covenant is replaced with a cashflow covenant, and terms covering gearing and minimum tangible net worth have been relaxed.

It also sees the maturity of the housebuilder's existing £400m revolving credit facility extended from February 2010 to July 2011.