The company said it has reached an agreement in principle on major commercial terms, which would see lenders and other financial stakeholders take a 20% stake in the Group.
However, the terms remain subject to credit approval from all providers before the new facilities are finalised.
Interserve stated: "In addition, the lenders have agreed to extend the covenant test deferral date and the maturities of the financing facilities agreed in December 2017 to 30 April 2018 to enable the successful execution of all documentation required for the refinancing.
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"The additional facilities comprise cash facilities of £196.6m plus bonding facilities of up to £95m. These new facilities will mature in September 2021. Existing debt and private placement loan notes will be amended to be co-terminous with the new facilities."
Overall, the deal means the company will have total cash borrowing facilities of £834m up until September 2021, with Interserve paying around £56m in interest on the finance in 2018.
Chief Executive Debbie White said: "Today's announcement is a significant milestone for Interserve and a major step in securing a firm financial platform to underpin the Group's future. We are encouraged by the support from our lenders in respect of these new facilities, which will allow the new management team to execute our business plan, focused on delivering a great service for customers, driving growth and restoring value."
(LM/MH)
