Stonegate has launched a £150m bond issue to repay borrowings to fund its recent acquisitions.
Last week the company announced the acquisition of the 32-strong Fever Bars as well as a further six sites from Novus Leisure.
It has now confirmed that the Novus sites acquired were the Balls Brothers sites in St Mary Axe, Hays Galleria, Mark Lane and Canary Wharf. As well as the Tank & Paddle sites in Bishopsgate and Minister Court. MCA understands that as part of the acquisition Stonegate has acquired the Tank & Paddle brand.
In a note on the bond issue, Moody’s analysts said the outlook for Stonegate was stable.
David Beadle, Moody’s senior credit officer and lead analyst for Stonegate, said: “While Stonegate’s leverage remains high, the company has a strong track of successfully integrating acquisitions and we expect this to continue with these latest deals. The company’s clear strategic focus on drinks-led pubs and significant investment capital spending is driving strong like-for-like sales and stable profit margins, despite the competitive and cost challenges faced by the industry.”
Speaking on the back of last week’s deal announcement, Stonegate chief executive, Simon Longbottom, said: “These are two excellent acquisitions for Stonegate which play to our strengths both in terms of market positioning and geography. Fever Bars is a business we have watched with interest - and admired - for some time. It is a great cultural fit with our existing portfolio, complementing Stonegate’s businesses, as well as giving us a presence in some new locations.
“The additional portfolio of Nouvs sites being acquired comprise another tranche of high quality assets which will further establish our leading credentials in London. We are already seeing the benefit of leveraging Novus’ acknowledged expertise in pre-booked sales, following our acquisition of 15 Novus bars in July last year, and look forward to building on this further over the year ahead.”
