PizzaExpress shareholders inject £20m in refinancing deal

PizzaExpress has secured a refinancing deal to shore up its balance sheet following a strong start to the year.

 

The restaurant group, which is one of Britain’s biggest casual dining chains with around 350 sites, has negotiated a £55m par debt paydown which will reduce its debt position to £280m.

 

As part of the refinancing, shareholders will inject £20m equity in to the chain’s parent company, Wheel Topco.

 

PizzaExpress said it had received "strong support" to extend the maturity of its senior secured notes from July 2026 to September 2029.

 

The chain said the refinancing deal had the backing of over 97% of its existing bondholders.

 

PizzaExpress said the move came after a “good opening quarter” for the brand with reported like-for-like sales up 1.3% for the first two months compared to last year.

 

The company said it would have a “robust liquidity position” following completion of the deal.

 

Paula MacKenzie, chief executive of PizzaExpress, said: “We are pleased with our start to the year, and completing a landmark refinancing ends Q1 strongly. This year we celebrate being 60 years young with PizzaExpress fans up and down the country, and our focus remains unchanged as ever…delighting each and every one.”

 

The refinancing comes 18 months after PizzaExpress owner Wheel Topco made an approach to Wagamama owner the Restaurant Group (TRG) over a possible bid to buy the business.

 

However, it ultimately declined to bid, citing market conditions. Private equity giant Apollo Global Management later acquired TRG for £506m.