FINANCE: Enterprise Inns has launched a cash tender offer and issue of £200m of new bonds as it restructures its borrowings.
The pub group, which has 5,500 properties, has offered to buy back £250m bonds from its £600m of outstanding notes issued in 2003.
Enterprise said the offer is being made as part of its “desire to proactively manage its liabilities and future debt redemption obligations and to extend its debt maturity profile”.
Offer terms include a cash purchase price equal to 108.75% of the nominal amount of the bonds, and an accrued interest payment.
The group also intends to issue new fixed-rate secured bonds due in 2023 “as long as investors agree to subscribe for at least £200m”.
As part of the debt restructuring the group has also agreed terms with a syndicate of banks to refinance its revolving credit facility.
Under the agreement, Enterprise’s existing term and revolving facilities is to be replaced with a four year revolving facility agreement “on improved terms with a syndicate of core relationship banks”.
The refinancing is subject to the consummation of the offer and the new bonds.
Enterprise said the offer and the proposed issue of the new bonds have been considered and positively received by bondholders representing approximately 25% of the 2003 bonds.
Deutsche Bank AG, London and RBS are the dealer managers; Deutsche Bank AG, London is the tender agent.
bridget.o’connell@estatesgazette.com
