Bovis Homes renegotiates banking facility

Bovis Homes has renegotiated its £220m banking facility with six lenders.

The deal, which came earlier than expected, will last until 2011 and reduces over time to £160m.

The house builder has relaxed the convenants on its reduced debt but will have to pay a higher interest rate.

Bovis will set out the full details of the terms in January. It hired KPMG to advise on the deal, and had originally envisaged renewing terms by March 2009.