Miller secures £160m cash injection

Aaron Morby 11 years ago
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Miller has struck a vital £160m refinancing deal with US investment giant Blackstone after months of detailed talks.

The deal with GSO Capital, part of the Blackstone Group, clears the debt-laden private house builder’s immediate financial problems and will allow it to press ahead with several housing schemes.

Under the deal, Blackstone is understood to be taking a 50% stake in the builder.

Miller’s house building arm has a strategic land bank totalling 5,000 acres, including a number of greenfield sites not yet allocated for housing.

It is also eyeing opportunities to consolidate the housing market in Scotland.

The private house builder and contractor was struggling to grow, burdened with around £600m of debt, some of which was due to mature this spring.

Now Miller’s net assets have been raised to £250m with existing debt refinanced for another five years.

The company investor group includes group chief executive Keith Miller, Noble Grossart, Lloyds Banking Group, Royal Bank of Scotland and National Australia Bank.

Keith Miller CBE, group chief executive, said: “This equips us with substantial extra muscle to take advantage of the many opportunities offered by the current economic cycle.

“I am delighted that we have attracted a significant capital investment from one of the world’s leading financial investors.

“This is due to the outstanding quality of our business and also to the continuing support of our existing banking partners.”

Completion of the transaction is subject to certain conditions, including regulatory consents.

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