1st Jul 2005 07:00
Punch Taverns PLC01 July 2005 Punch Taverns plc("the Group" or "the Company") Debt Restructuring In April, Punch Taverns plc announced a review of options to refinance shortterm debt used to fund recent acquisitions, including the acquisition of theInnSpired Group. The Company has now decided to incorporate these new assetsinto the Pubmaster securitisation (Pubmaster Finance Limited) and to makecertain other improvements to that securitised structure. The expected impact of this refinancing will be to increase the long termsecuritised debt of the Punch Group to approximately £3.04bn, reduce theweighted average cost of that debt, and create approximately £150m of new cashafter repayment of all short term borrowings. All securitised debt will be atfixed or effectively fixed rates of interest, and repayable over terms extendingto 2035. A circular is being issued today which seeks the approval of the holders ofPubmaster Finance Limited fixed rate notes to: • incorporate the inclusion of 663 pubs currently outside the Pubmastersecuritisation (including 471 pubs retained from the InnSpired acquisition) andthe removal of 400 lower profit pubs from the Pubmaster securitisation; • update the terms and conditions of the fixed rate notes and thefinancial and operating covenants to align them with current market conventionand to make them more consistent with the Group's other securitisation, PunchTaverns Finance; and • increase the net debt supported by the enhanced cash flows of theimproved portfolio of pubs. Subject to obtaining requisite approvals, the Company intends to issue new fixedand floating rate notes to replace the existing Pubmaster floating rate notes.It is expected that marketing of the new notes will commence during July andthat the process will be completed in early August. 1 July 2005 ENQUIRIES: Punch Taverns plc 020 7868 8903Giles Thorley, Chief ExecutiveRobert McDonald, Finance Director College Hill 020 7457 2020Justine WarrenMatthew Smallwood This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Punch Taverns PLC