Stakeholders of Punch Taverns have made a key commitment to ensure that the proposed restructure of the pub company’s debt is not hampered if they chose to trade their bonds.
In a statement from Punch released today, the company said the institutions comprising its stakeholder group have undertaken (or, in the case of one of the institutions, is expected to undertake) a so-called “lock-up” agreement.
This means that if the stakeholders chose to trade their bonds, the buyers must support the recent restructure proposals.
The stakeholder group represents institutions who in aggregate own or control c59% of the notes across Punch A and Punch B, c54% of the senior notes across Punch A and Punch B, c62% of the junior notes across Punch A and Punch B and c54% of the equity share capital of Punch.
Under the restructure plan, which will cut Punch’s net debt by £600m, the company will raise £50m of equity and undergo a debt-for-equity swap that will dilute ordinary shareholders to 15% of the enlarged share capital.
The agreement, announced last Thursday, was reached subject to the restructuring being launched by 11 August.
