Stonegate completes £638m refinancing deal
The deal is in relation to 1,034 pubs within its estate.
Stonegate Pub Company has confirmed a £638m refinancing deal in relation to 1,034 pubs within its circa 4,500-site estate.
It has been reported that Apollo Global Management is the lender behind the deal, which recently agreed to purchase The Restaurant Group.
The Stonegate portfolio in question comprises 944 leased and tenanted and 90 free-of-tie freehold pubs predominantly located towards the south
of England. The venues generate the majority of their revenue from drink sales, with a mid-market focus and a strong bias towards well-populated, suburban locations.
As part of the deal, the portfolio will be acquired by newly incorporated, wholly-owned unrestricted subsidiaries of Stonegate Pub Company called New PubCos. As part of the transaction, Stonegate will enter into agreements with New PubCos on an arm’s length basis to provide the portfolio
with certain management and procurement services.
"This transaction marks an important step in achieving the group’s long-term balance sheet goals and is the result of a competitive process that saw significant interest," says David McDowall, CEO of Stonegate. "We are pleased with the result of this attractive financing arrangement, and our ability to preserve the option of retaining the portfolio within the group."
In consideration for the transaction, Stonegate and/or its restricted subsidiaries will receive upon completion £609m cash proceeds, funded to New PubCos, and a £201m promissory note issued to Stonegate.
You may also be interested in…
