The pricing comprises £260m in aggregate principal amount of its 5.75% senior secured notes and £140m in aggregate principal amount of its floating rate senior secured notes both due in 2019.
The offering is expected to close on 11 April.
Stonegate is issuing the notes to refinance existing bank debt and shareholder loans and provide a shareholder distribution. The transaction also establishes a longer term capital structure for the company, following a period of aggressive growth through acquisitions.
Public offering
The pricing comes amid reports that the Ian Payne-chaired company is considering plans to initiate an initial public offering.
The recent change of management — with chief executive Toby Smith set to leave the business, to be replaced by Greene King Pub Partners managing director Simon Longbottom — combined with the acquisition of 78 former Bramwell sites last year, has been viewed as a clear signal that the group is being prepared for a flotation, possibly at the end of this year or early 2015.
Meanwhile, Moody’s, the credit ratings agency, has assigned a first-time rating to Stonegate on the back of the bond offer.
Moody’s said: “The stable rating outlook reflects Stonegate’s success in acquiring and integrating a material portfolio of pubs, while improving its key performance indicators. We expect the company to show moderately improving coverage and leverage trends over time.”