Enterprise agrees to bank and bonds refinancing
Wed, 1st October 2014

Enterprise agrees to bank and bonds refinancing

Solihull pub company Enterprise Inns has agreed terms for the refinancing of bonds and a new £138m banking facility.

The partial refinancing of the 2018 bonds will result in a lower interest cost to the business and an extended debt maturity.

Enterprise has received and accepted tender instructions for just less than £250m of its outstanding 6.5 per cent secured bonds, due 2018.

The bonds will be purchased at a cash purchase price of 108.75 per cent of their principal amount.

A new issue of £249.5m of secured bonds has been priced with a maturity of October 2023 and a coupon of 6 per cent.

The pubco also signed a new £138m non-amortising revolving credit facility provided by Deutsche Bank, the Royal Bank of Scotland, Barclays, BNP Paribas and Lloyds Bank. It will be available through to September 2018.

Chief executive Simon Townsend said: "The success of this proactive refinancing builds upon the positive momentum we are delivering within the business.

"The continued support of our core relationship banks and bondholders is further evidence of the strength of the Enterprise Inns business and our secure, long-term capital structure.

"We continue to work hard to deliver improving returns to all stakeholders and these actions are another important step forward in this regard."

Completion of the refinancing transactions is expected to take place next week (7 October 2014) and is subject to final documentation and other standard conditions being met.

category Midlands  |  source Insider Media