1 Oct 2014 07:00
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS), ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA, CANADA, AUSTRALIA OR JAPAN OR IN OR INTO ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS DOCUMENT.
1 October 2014
Successful agreement of refinancing terms and new bank facility
Enterprise Inns plc ("ETI" or the "Company") announces that it has agreed the terms of a partial refinancing of its 2018 bonds. The partial refinancing will result in a lower interest cost to ETI and an extended debt maturity, through proactively addressing the 2018 bonds. The Company has also agreed the terms on which its existing bank facility will be replaced by a new revolving credit facility on improved terms. Completion of the refinancing transactions is expected to take place on or about 7 October 2014 and is subject to final documentation and other standard conditions being met.
ETI has received and accepted tender instructions for £249,521,000 of its outstanding 6.500% secured bonds due 2018 pursuant to the terms of its previously-announced tender offer. The bonds will be purchased at a cash purchase price of 108.75% of their principal amount. In connection with the tender and purchase, a new issue of £249,521,000 of secured bonds has been priced with a maturity of October 2023 and a coupon of 6.00%. This new issue will benefit from a security package on substantially the same terms as the tendered and purchased 2018 bonds.ETI has also signed a new £138 million non-amortising revolving credit facility which, upon completion of the refinancing, will be available through to September 2018. This extends the maturity of the Company's previous facility and also benefits from improved terms, simplified covenants and lower pricing with a new interest rate of 300 basis points above LIBOR. This facility will replace the existing amortising facility, which currently stands at just over £140 million, with applicable interest rates of 400 and 450 basis points above LIBOR.
The new bank facility will be provided by Deutsche Bank, The Royal Bank of Scotland, Barclays, BNP Paribas and Lloyds Bank. Deutsche Bank and The Royal Bank of Scotland acted as Dealer Managers for the bond tender and along with Barclays were Global-Coordinators of the new bond issue, with BNP Paribas and Lloyds Bank acting as Bookrunners on the new issue.Simon Townsend, Chief Executive Officer commented:
"The success of this proactive refinancing builds upon the positive momentum we are delivering within the business. The continued support of our core relationship banks and bondholders is further evidence of the strength of the Enterprise Inns business and our secure, long term capital structure. We continue to work hard to deliver improving returns to all stakeholders and these actions are another important step forward in this regard."
Contacts:
Tulchan Communications Peter Hewer 020 7353 4200
Jonathan Siburn
Enterprise Inns
Neil Smith, Chief Financial Officer 0121 733 7700
Emma Greves, Investor Relations Manager 0121 733 7700
DISCLAIMER
This announcement is addressed to specific individuals who ETI, on reasonable grounds, believe are individuals (i) having professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order") and qualified investors falling within Article 49(2)(a) to (d) of the Order, and (ii) whom it may otherwise lawfully be communicated (all such persons together being referred to as the "relevant persons"). This announcement must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this communication relates is available only to relevant persons and will be engaged in only with relevant persons. This document is not intended for distribution to and must not be passed on to any retail client.
This announcement is an advertisement and is not a prospectus for the purposes of EU Directive 2003/71/EC (the "Prospectus Directive"), as amended, or legislation implementing it in any Member State, and/or Part VI of the Financial Services and Markets Act 2000 (the "FSMA"). A prospectus will be prepared and made available to the public as required by Part VI of the FSMA and in accordance with the Prospectus Directive. Investors should not subscribe for any new secured bonds referred to in this announcement except on the basis of information in such prospectus. The prospectus, when published, will be available on the websites of ETI and the London Stock Exchange.
This announcement does not constitute or form part of an offer to sell securities or the solicitation of any offer to subscribe for or otherwise buy any securities. The securities mentioned in this announcement have not been and will not be registered in the United States under the US Securities Act of 1933, as amended (the "US Securities Act"), and may not be offered or sold in the United States (as such term is defined in Regulation S under the Securities Act) or to or for the account of U.S. persons, absent registration or exemption from registration under the US Securities Act. No public offer of the securities mentioned herein is being made in the United States.
This announcement shall not constitute an offer to sell or the solicitation of an offer to buy any of the new secured bonds or any other securities. There will not be any sale of the new secured bonds in any such state or country in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state or country. The transactions described above and the distribution of this announcement and other information in connection with the transaction in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.
Stabilisation in respect of the new secured bonds may be conducted in accordance with FCA and ICMA Rules.