1st Aug 2005 16:17
Punch Taverns PLC01 August 2005 Punch Taverns plc("Punch" or "the Group") Completion of Debt Restructuring Punch Taverns confirms the successful completion of the debt restructuring asannounced on 1st July. This restructuring completes the refinancing of the Pubmaster and InnSpiredacquisitions and makes new cash available to the Group. It will improve theefficiency of Punch's debt funding, replace short term borrowing with long termsecuritised finance, reduce overall interest rates, and modernise the Group'scorporate debt structure. In particular, the Pubmaster debt securitisation (now renamed Punch TavernsFinance B) has been extended to include a total of 3,176 pubs, and covenantshave been amended to improve operational flexibility. The debt quantum in thissecuritisation has been increased from £0.88bn to £1.25bn, with the proceedsused to repay short term borrowings and leaving some £150m new cash available tothe Group. The average interest cost of the new issuance is 5.4%, reducing theblended average interest rate on this securitisation from 6.9% to 6.2%,including the costs of hedging. Following this restructure, 7,353 (94%) of Punch Taverns' pubs are securitised,with a combined debt of £3.04bn. This debt is investment grade, entirely atfixed rates of interest averaging 6.8%, and fully amortising by 2035. Punch Taverns has separately announced the acquisition of Avebury Taverns, whichis progressing well and is due to complete on 5th August. 1 August 2005 ENQUIRIES: Punch Taverns plc 020 7868 8903Giles Thorley, Chief ExecutiveRobert McDonald, Finance DirectorNeil Preston, Company Secretary College Hill 020 7457 2020Matthew SmallwoodJustine Warren This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Punch Taverns PLC