(Reuters) - British construction and services company Interserve said on Wednesday it reached an agreement in principle with its creditors which will secure its funding.

Interserve, which warned in October that it may breach covenants after a trading downturn, said its lenders had agreed to extend a covenant test deferral date and the maturities of the financing facilities to April 30 from March 31, agreed in December.

Two additional credit facilities comprising of cash facilities of 196.6 million pounds and bonding facilities of up to 95 million pounds, maturing Sept. 2021, have also been agreed, Interserve said.

In total, the company will have cash borrowing facilities of 834 million pounds immediately following the refinancing completion, Interserve said.

Outsourcers such as Interserve have been the focus of investor attention since rival Carillion entered liquidation in January, putting 43,000 jobs at risk.

Interserve's shares had fallen sharply in January after the collapse of Carillion. They rose strongly on Wednesday and closed 25 percent higher.

(Reporting by Rahul B in Bengaluru. Editing by Jane Merriman)

Stocks treated in this article : Interserve plc, Carillion