The refinancing of Orchid Group, the c.300-strong managed pub operator, is understood to have been completed, with Deutsche Bank’s real estate arm becoming its sole backer through a debt-for-equity swap. The move, which M&C Report flagged up last October, is thought to have seen Deutsche write off a chunk of Orchid’s debt in return for taking sole control of the company from US private equity firm GI Partners and fellow lender Lloyds, both of which have now exited the business. Deutsche Bank will continue to back the current management team led by Rufus Hall and it is understood that it will provide funds to enable it to invest in its existing estate and in strategic bolt-on acquisitions. The deal is seen as a positive one for the group, which will allow it to move forward under one owner with a balance sheet more suited to today’s operating environment. Last October, the group said it was set to breach covenants on its debt, after reporting a pre-tax loss of £17.2m for the year to 1 January 2011 and writing down the value of its estate by £10.9m. Its debt stood at £42.2m. However, Orchid produces £38m at an annual EBITDA level. The company, which went through a pre-pack administration at the end of 2008, forecast that it was to breach some of its existing covenants and “thereafter due to current trading patterns”. It owns brands including The Living Room, Ultimate Leisure and Bar Room Bar as well as a collection of individual pubs, restaurants, bars and clubs.