12th Jul 2022 09:19
(Alliance News) - Restaurant Group PLC on Tuesday said it has acquired Mexican restaurant chain Barburrito Group Ltd and added it has made an early repayment of its term-loan facilities.
The Wagamama and Frankie & Benny's owner bought the Manchester-based chain for GBP7 million.
Barburrito currently operates 16 sites in "high-footfall locations", including shopping centres, city centres and transport hubs.
"Barburrito's strong current trading gives us confidence in its ability to align with and extend TRG's track record of market outperformance," Restaurant Group said.
In addition, the company decided to make an early repayment of its GBP44 million term-loan facilities.
This will reduce its total available debt facilities to GBP361 million. This debt comprises a GBP241 million term loan and a GBP120 million revolving credit facility.
Restaurant Group currently has cash in excess of GBP190 million and decided to purchase interest caps, to manage the "risk of interest rate increase".
This includes GBP125 million of debt limiting the sterling overnight index average to 0.8% for a cost of GBP2.2 million to November 2025 from November 2022.
Restaurant Group explained that the purchase of the caps is supposed to provide further protection for the company over the next few years.
The company maintained its previous guidance for expected profit and loss interest charge at GBP24 million to GBP25 million.
Shares were down 0.6% at 43.94 pence each on Tuesday morning in London.
By Abby Amoakuh; [email protected]
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