Greene King issues £600m of bonds to cover loan

Greene King has issued £600m of bonds to partly refinance the £1.05b loan it took out to buy 432 pubs from the Laurel Pub Company in July last year.

The Suffolk-based pub group has securitised 904 of its 2,100 managed and tenanted pubs.

This is the first time money has been raised in this way on a hybrid mix of sites, according to a report in The Times.

In December, Greene King financed the first part of the £1.05b Laurel deal when it took out a syndicate loan of £450m.

To finance the remainder of the deal, the company has now issued three classes of bond, which will mature between 2031 and 2034.

Holders are guaranteed a fixed return against the income generated by the 305 managed and 599 tenanted sites.

It is believed that the mix of properties will allow Greene King more flexibility to convert poorer-performing managed pubs to tenanted operations.

City analysts said that the securitisation will boost the group's ability to purchase more pubs in the sector.

by Tom Bill

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