Housebuilder Bovis has started the year by negotiating new banking facilities with its lenders. Previously set to expire in 2010, its £220m facility has now been extended to 2011 with a "more appropriate" covenant, but on the proviso that debt is reduced to £160m over the term.
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The last fact has disappointed analysts, who had hoped that the lowly-geared Bovis could borrow to capitalise on rock-bottom land prices in the next two to three years. The cost of debt has also increased, but the company said it would not provide details until January's trading statement.