Herbies advises banks on Barratt rights issue

A team led by partners Will Pearce and Alex Bafi advised the banks, which are long-standing clients of the firm.

Barratt was advised by Slaughter and May partner Kathryn Davis and Davis Polk & Wardwell partner Paul Kumleben.
The rights issue will be used by the housebuilder to pay off debt and for general corporate purposes and is fully underwritten by Credit Suisse, UBS, Barclays Capital, HSBC, LloydsTSB Corporate Markets and RBS Hoare Govett.

This follows capital raisings from a number of housebuilders including Taylor Wimpey, Berkeley, Bellway, Galliford Try, Bovis and Redrow, but Bafi thought that the number of cash calls in this sector was quietening down.

“There have been a number already. We’re probably in the tail end, although perhaps it’s a fat tail,” he commented.