Builder Barratt set for lifeline refinancing

LONDON (Reuters) - Housebuilder Barratt Developments (BDEV.L) is close to securing a rescue refinancing with lenders that will relax its banking covenants and help it cope with the housing market downturn, the Daily Telegraph said on Tuesday.

The newspaper quoted sources close to the builder as saying that, barring any last minute hitch, the refinancing would be announced at a trading update next week.

It said the firm had hired investment bank NM Rothschild and a restructuring team from Deloitte to negotiate with its lenders.

The builder's bank syndicate, led by HSBC (HSBA.L), Royal Bank of Scotland (RBS.L), Barclays (BARC.L) and Lloyds TSB (LLOY.L) had given preliminary approval to the deal, it added.

The newspaper said the deal would be a coup for Barratt because it has not had to ask shareholders for fresh equity in exchange for covenant waivers.

On Monday, rival Taylor Wimpey (TW.L) said it was talking to shareholders and other institutions about raising money, following press reports it was seeking 500 million pounds.

Barratt was not immediately available for comment.

(Reporting by Mark Potter; Editing by Quentin Bryar)