As at 30 November 2016, our borrowings comprised a £400m bank facility available to us until 2021, which was £175m drawn. Our borrowings also included two whole business securitisations, together comprising around £2 billion of debt in the form of tradable, listed bonds secured over the assets and cashflow of a majority of the pub-related parts of the business.
In March 2005 we completed a £600m securitisation, which was secured by just under half of our pubs at the time (both managed and tenanted). The funds were used to repay a short-term loan taken out in August 2004, which had helped us fund the acquisition of the Laurel Neighbourhood Estate.
In May 2006 we added a further £550m of bonds to this securitisation. The proceeds were used to repay short-term bank loans. As a consequence, approximately 70% of the group's pubs became securitised.
We then undertook a further securitised fund raising in June 2008, issuing another £350m of bonds. The proceeds were used to repay existing bank loans.
The pubs within the securitisation estate are owned by Greene King Retailing Limited, a 100% owned subsidiary of Greene King plc, and which has a financial year end in line with the rest of the group. Financial performance statistics for the securitisation pubs will be released half-yearly in July and December.
In June 2015 we acquired Spirit Pub Company plc including its whole business securitisation (debenture), which comprised around £730m of debt in the form of tradable securities.
In May 2016 we added a further £300m of bonds to the Greene King securitisation, realising net proceeds of £180m after settling certain interest rate swap liabilities. The additional funding provided longer-term funding for general business operations including increasing investment in the business.
In February 2019 we issued £250m of bonds in the Greene King securitisation at 3.593%. The new bonds amortise from September 2020 – March 2035. The proceeds were applied to reducing bank debt in facility B, which remains available to finance further Spirit bond prepayments.
Financial performance statistics will be release half-yearly in August/September and December for the Greene King Securitisation and in June/July and December for the Spirit Debenture.
If you have any questions on this information please contact email@example.com