Enterprise Inns issues £100m bonds in a bid to save pubs
Enterprise Inns has today issued £100m worth of bonds to reduce the amount of pub disposals it is forced to make.
The unsecured guaranteed convertible bonds will mature in 2020 and are expected to carry a coupon of between 3.5% and 4% per annum payable quarterly in arrears.
By raising £100m Enterprise said that it would be able to focus on the disposal of its underperforming assets and be able to invest in those pubs with better prospects.
It will also mean the group will not need to draw down the £70m first part of its banking facility. This would reduce the overall bank facility to £150m, with £75m to pay on its maturity in June 2016.
ETI chief executive Ted Tuppen said: "During the past four years, we have reduced the overall level of debt by over £1b, partly funded by cash generated from operations and the balance through disposals. As the quality of our pubs has improved, we have also moved towards delivering like-for-like income growth across the whole estate. The Offering will bring to an end the use of disposal proceeds for debt reduction and allow us to drive real growth in the business."
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