Taylor Wimpey - Debt restructuring

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Slaughter and May advised Taylor Wimpey, one of the largest house building groups in the UK, in relation to its debt restructuring. Taylor Wimpey (the "Company") announced on 7 April that amendment of its debt facilities is now substantially complete.

The Company’s banking syndicate has agreed amendments, including replacement of applicable financial covenants, to its £1,650 million revolving credit facility and £50 million term facility, and US private placement note holders holding approximately £507 million of notes have agreed to amend the terms of their notes to reflect the same amendments.

The Company also announced proposals to amend the conditions of its £250 million Eurobond due 2012 and £200 million Eurobond due 2019, by way of consent solicitation which commenced on 8 April. Two bondholder meetings will be held on 30 April, 2009 in order to approve amendments to the Eurobonds, but irrevocable commitments to support the amendments have already been obtained from holders of over 75% of each issue of bonds.

The terms of the amendments also include an agreement to issue warrants over 5% of shares in the Company to bank lenders, US Private Placement note holders and Eurobond holders. In addition, undertakings were negotiated with the Company’s two UK defined benefit pension schemes, together with agreements in respect of new facilities with surety providers.

The Slaughter and May team included:

Financing: Mark Dwyer (partner), Nick Gavin-Brown (associate), Michael Corbett (associate), Frances Churchard (associate); Corporate: Jeff Twentyman (partner); Tax: Richard Carson (partner), Sara Stewart (associate)