UK: W&DB switches debt structure
Wolverhampton & Dudley Breweries is looking to change the structure of its outstanding debt. The UK company said yesterday (11 July) that it will switch its debt to a mostly securitised set-up of up to GBP805m (US$1.4bn).
The deal, allowing W&DB to borrow money against future income from its pubs, will allow the company to cut interest costs and gain more financial flexibility.
Late last week, the brewer and pub owner proposed selling securitised bonds of between GBP530m and GBP805m. The bonds would be repaid with income from 70% of W&DB's 1,592 managed and tenanted pubs.
Speaking to Reuters, finance director Paul Inglett said: "This proposed refinancing of our existing debt will reduce interest costs and is consistent with our strategy of retaining the high quality freehold asset base of business, whilst providing greater flexibility for further development."
Inglett would not disclose to Reuter what W&DB's existing outstanding debt currently stands at.
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