Mitchells and Butlers, the pub and restaurant group, has completed the £1.1bn bond issue it launched at the end of last month as part of its ongoing plans to return cash to shareholders, and also to maintain optimum balance sheet efficiency. Of the total amount raised, £655m is incremental financing, which will be used to increase the level of debt in its securitised estate from £1.8bn to £2.46bn. The balance of £450m will be used to refinance existing sterling and dollar denominated Floating Rate Notes. Following the bond issue, M&B said it would enter into a medium-term unsecured loan facility, to replace the short-term bridge financing put in place to acquire 239 pub-restaurants from Whitbread. The company is then proposing to pay shareholders a special dividend of £1 a share, amounting to about £486m. Following the completion of this refinancing, the company will invest a further £50m in its pension fund, on top of the £10m committed for 2007, to cover the £70m deficit reported as of 15 April 2006.