Enterprise Inns delays refinancing until next year

Continuing uncertainty in the debt markets has forced Enterprise Inns to delay putting in place a new long term debt package until next year.

In a trading statement issued today, Enterprise said its original aim of raising around £750m of additional debt by the end of this year was being put back until 2008.

"The board remains committed to determining the structure it considers to be in the best long term interests of shareholders," it said.

"However, to avoid pricing new long term debt against the background of the current turbulence in the debt markets we believe that a delay into 2008 is appropriate."

The group said it had "sufficient funds" to continue its share buyback programme, which has seen more than £640m-worth of stock taken out of the market in the year to date.

It added that talks with tax officials with a view to meeting the criteria required to turn Enterprise into a real estate investment trust were "ongoing".

The pubco noted that trading during the year had been in line with expectations and average EBITDA per pub grew by more than six per cent, thanks to investment in its pubs and "ongoing improvements in the quality and earnings potential" of its sites.

On the subject of the smoking ban, the group said: "It is as yet difficult to evaluate the impact of the smoking bans introduced in England and Wales during the year. Anecdotally, and not surprisingly, quality pubs that had prepared for the ban have performed well.

"We continue to work with our licensees to maximise the opportunities that the ban will bring but, at the same time, we are aware that the real test of the smoking pub goer's resolve will come with cold and wet winter weather."

Enterprise announces its annual results for 2007 on November 20.