Wimpey wins borrowing deal worth £2.5bn

Debt-ridden housebuilder Taylor Wimpey today said that its vital refinancing is "substantially complete" and that trading since New Year is ahead of expectations.

After more than nine months of talks, the firm — which has a £1.57 billion debt mountain — has finally secured a new £2.47 billion loan facility from its banks.

Thought it does not need to raise new funds from investors, it says, it has paved the way for a £350 million fundraising by the end of next year.

Taylor Wimpey, which has already had to axe hundreds of construction jobs, reported losses of £1.97 billion for 2008 — as against £33.6 million in 2007 — but said sales are "higher than expected" so far this year.