Pub giant Enterprise Inns has agreed the terms of a partial refinancing its debts.
The company announced to the City this morning that the move will result in lower interest costs to the business and an extended debt maturity on its 2018 bonds.
The deal affects £249.5m worth of bonds on which the company is currently paying 6.5% interest. The bonds will be purchased at 108.75% of their principal amount and have now been priced with a maturity of October 2023 and a coupon of 6%.
The business has also signed a new £138m revolving credit facility which will be available through to September 2018, extending the maturity of its previous facility and offering simpler terms. The new bank facility will be provided by Deutsche Bank, The Royal Bank of Scotland, Barclays, BNP Paribas and Lloyds Bank.
Simon Townsend, chief executive officer of Enterprise Inns 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."