Punch Taverns restructure plans backed by majority of bondholders
The pubco announced yesterday that the influential ABI Special Committee were among “a broad range of stakeholders” which now supported the company’s proposals. It means about 60% of bondholders are now signed up against a 75% requirement in each tranche of debt. The agreement is subject to the restructuring being launched by 11 August. It brings to an end three and half years of negotiations.
The agreement will also require a further extension of covenant waivers which were approved by noteholders on 13 May.
Andy Slee, Punch’s central operations director, said: “Whilst there is still a lot of work to be done to conclude our restructuring programme, this is announcement is a significant step in the right direction towards achieving that aim.
“As we have said throughout, this process doesn’t affect day to day relations with our pubs and partners so we remain focussed on helping them achieve their potential. If our pubs do well then so do we.”
The stakeholder group comprises the ABI Special Committee together with a number of individual funds or subsidiaries of such funds advised or managed by Alchemy Special Opportunities LLP, Avenue Europe International Management LP, Angelo, Gordon & Co LP, Glenview Capital Management LLC, Luxor Capital Group LP, Oaktree Capital Management LP, Seer Capital Management LP and Warwick Capital Partners LLP.
Positive
Stephen Billingham, executive chairman of Punch Taverns, said: ”We view the current situation as very positive and that a successful restructuring can be implemented.
“Continued constructive dialogue and determination from all involved will be required to achieve this.”
Punch also issued an interim third-quarter management statement for the 16 weeks to 21 June showing like-for-like net income in the core estate up 1.4%, equalling the company’s performance in the first half of the year. The company claimed it remains “on track to meet full year profit expectations”, adding that “the disposal programme remains on track to deliver at least £100m of net proceeds for the full year” and that its “strong investment pipeline in core pubs continues”, with an average spend of approximately £100,000 per invested pub.
