Ei Group, the UK’s largest pub operator, has updated on trading in its year to date showing like-for-like net income in its tenanted and leased estate up 1.3% in the 47 weeks to 25 August.

The update was included in the announcement of a £150m unsecured bond offering and the tender in respect of its outstanding £97m convertible bonds.

The group has continued to convert selected pubs from its leased and tenanted to its managed estate, which now comprises 354 pubs, and is on track to finish the financial year at 365. Comparable managed sites delivered like-for-like sales growth of 6.6%, with particularly strong performance from beer sales.

EiG now has 376 sites on free-of-tie agreements, ahead of its 375 year-end guidance, with the estate showing like-for-like net income growth of 6.7%. The company confirmed it had appointed Rothschild & Co to “explore various possible routes to optimise value” of the commercial properties estate, adding “this may include the disposal of all or part of the portfolio”.

On 15 August, in agreement with its bank group, EiG increased the size of its bank revolving credit facilities from £140m to £150m and extended the availability of the facilities from August 2020 to August 2022 on substantially the same commercial terms.

Today it has launched an offering of £150m unsecured bonds and a conditional tender offer in respect of the outstanding £97 convertible bonds in advance of their maturity in September 2020.

Chief executive Simon Townsend: “Trading performance has steadily improved throughout the year across all areas of our business. Our largely wet-led estate has benefited from the good summer weather and the successful FIFA World Cup underpinned by our continuing investment programme as we further evolve the profile of our portfolio to optimise returns.

“We continue to manage our balance sheet obligations proactively to ensure that we are able to drive long-term growth in shareholder value.”