Stonegate Group is working on options to raise new debt against 1,000 pubs, according to people familiar with the situation, as plans to sell off the portfolio have so far been unsuccessful.
Bloomberg News reports the TDR Capital-owned pubco is proposing to split of the 1,000-strong group into a special purpose vehicle and using it to raise debt from outside parties.
Stonegate would manage the vehicle and has appointed EastDil Securities and Barclays to canvass offers, according to Bloomberg sources.
The c4,500-strong pub group needs the cash to pay down existing debt acquired through years of rapid expansion since its creation in 2010.
It has more than £2bn of maturities approaching in July 2025, with Moody’s Investors Service forecasting the ratio of net debt to profits to be more than eight times at the end of 2023.
Stonegate’s junk bonds, due in 2025, are currently quoted at 94p on the pound, according to Bloomberg.
