Taylor Wimpey not expected to unveil rights issue tomorrow

Taylor Wimpey’s results are due to be aired tomorrow – and word is that the house builder will not use the occasion to announce any capital raising.

Today’s edition of the Financial Times says: “Market rumours at the end of last week suggested that a rights issue to raise at least £100m at 25p a share was imminent.”

But any raising of less than £350m is thought to be unlikely as the beleaguered house builder must raise that amount by next July if it is to avoid a 10.5% interest rate on its £1.57bn of net debt.

The trouble is that raising that sort of sum would be like pushing water uphill as TW’s market capitalization currently runs to only £495m.

A deal is likely to be nodded through with TW’s eurobond holders ahead of the publication of the 2008 financial results tomorrow.

TW has also been in meetings with a view to bringing in new investors as it is remarkably short of long-term institutional investors.