Yorkshire Bank backs £300m facility for Persimmon plc

Persimmon plc, one of the UK’s leading housebuilders, has agreed a £300m deal with a consortium of banks including Yorkshire Bank Corporate & Structured Finance.

The new package will replace Persimmon’s existing £322m facilities. Yorkshire Bank is providing £30m as part of a six-bank club.

Yorkshire Bank has enjoyed a long-term relationship with Persimmon dating back to the founding of the company in 1972, and provides the company with a range of other facilities supporting the growth of the business to become the largest UK housebuilder by market capitalisation.

Persimmon, which is based in York and is listed on the London Stock Exchange’s Official List, has a current market capitalisation of around £1.4bn. In 2010 the company completed sales of 9,384 homes on around 380 active sites in the UK.

Persimmon is the third largest house builder in the UK by sales volume, and is viewed as one of the most financially robust. Unlike some companies in the sector, it has not needed to repair its balance sheet by approaching shareholders. Accounts for the year to the end of December 2010 show turnover to be £1.57bn.

The Yorkshire Bank team was led by John Newman, Area Director with Corporate & Structured Finance in Manchester. He said: “Persimmon has been a role model to the housebuilding sector during the very challenging market conditions we have witnessed. As a result of exceptionally strong leadership and management, the company faces the future in great shape. I am delighted that we have been able to continue to play an important role in providing further ongoing support to the business.”