Stonegate agrees refinancing deal
The deal includes agreements with bondholders and a £250m shareholder contribution from owner TDR Capital.
Stonegate Group has announced the agreement of its debt refinancing requirements, addressing its multi-billion-pound debt pile.
The business says that the refinancing package, which follows the announcement in December 2023 of the £638m financing of a portfolio of 1,034 pubs, will see Stonegate’s balance sheet structure "significantly simplified and strengthened".
As part of the deal, which importantly includes new agreements with bond holders, funds managed by owner TDR Capital will make a c.£250m shareholder contribution.
"We have always said we would achieve the right outcome on our refinancing requirements, and I am delighted we can now move forward with confidence and certainty, having achieved our balance sheet goals," says David McDowall, CEO of Stonegate Group (pictured). "The new agreement enables us to really focus on driving performance across all our divisions, and delivering on our strategy which is now having a material impact on our overall profitability.
"I am pleased that we now have certainty to truly focus on what we do best, which is bringing people together through our passion for great pubs, bars and venues. I would like to thank our lenders for the positive way we have reached these agreements and TDR for their continued support. Most importantly, I would like to thank Stonegate colleagues for their continued dedication, commitment and passion which has seen us navigate a difficult few years. We are now in a really strong position to deliver on our longer-term objectives."
Clear strategy
Following the announcement, Stonegate said it has a clear strategy in place to drive financial improvement focussed on its commitment to position every site for success (putting the right pub in the right place, with the right investment), continuous innovation, investment in technology, increased efficiencies and strategic asset sales
This strategy, the business says, is now delivering results. In the first half to 7 April 2024, Stonegate reported an 8% rise in adjusted EBITDA to £196m, with a particularly strong performance from leased and tenanted and operator-led businesses.
You may also be interested in…
