Greene King says pub business is good

Greene King has reported 'positive' trading across all four of its businesses.

It said its debt refinancing had improved flexibility and lowered costs at it Pub Company, Pub Partners, Brewing and Belhaven divisions.

Like-for-like sales in Pub Company were up 1.8%.

Like for like turnover in Pub Partners was up 2.1% and total beer sales by volume were up by 7 %.

The sales of Greene King IPA were up 4%, Abbot Ale up 5% and Old Speckled Hen up 9%.

The company said it was also pleased with the integration of the Belhaven business into its portfolio and added that although early days it was pleased with Belhaven's performance post Scottish smoke ban.

In the 51 weeks, Belhaven Best volume was up 8.6%.

Securitisation​In March 2005 Greene King successfully completed its inaugural securitisation, issuing £600m of investment grade bonds backed by just under half of its pubs at the time.

Following the acquisitions of Belhaven Group plc and TD Ridley & Sons Limited in 2005, Greene King has decided to refinance approximately £550m of its bank and debenture debt via a further issue of bonds.

Whilst total debt remains unchanged, the further £550m of bond finance will take the overall outstanding Greene King bond issuance to £1,137m, backed by approximately 70% of its pubs.

The further bond finance has today been priced at advantageous rates, and the transaction is expected to be completed next week, when the funds raised will be used to partially re-pay the group's existing loans.

Rooney Anand, chief executive of Greene King, said: "Trading across the group has been positive and we remain on course to achieve a successful outcome to the year. At the same time, we have completed another successful, innovative financing exercise, achieved at attractive interest rates for Greene King." ​