Pub and bar group Stonegate Pub Company has agreed a debt refinancing deal, addressing its debt of £2.2bn,
Stonegate revealed that the refinancing package will include a circa £250m shareholder contribution from funds managed by private-equity firm and owner TDR Capital.
The deal will “see Stonegate’s balance sheet structure significantly simplified and strengthened”, the business said in a statement.
As part of the deal, which importantly includes new agreements with bond holders, funds managed by owner TDR Capital will make a c.£250m shareholder contribution.
Stonegate incurred much of its debt through its acquisition of Ei Group. Before the purchase, Stonegate owned around 760 sites, a number which increased to over 4,000 following the takeover, and as part of the acquisition Stonegate also inherited Ei Group’s existing debt of £1.7 billion.
David McDowall, chief executive of Stonegate Group, said:
“We have always said we would achieve the right outcome on our refinancing requirements, and I am delighted we can now move forward with confidence and certainty, having achieved our balance sheet goals.
“The new agreement enables us to really focus on driving performance across all our divisions, and delivering on our strategy which is now having a material impact on our overall profitability.”
He added: “I would like to thank our lenders for the positive way we have reached these agreements and TDR for their continued support. Most importantly, I would like to thank Stonegate colleagues for their continued dedication, commitment and passion which has seen us navigate a difficult few years. We are now in a really strong position to deliver on our longer-term objectives.
