Sobering up

15 June 2009 By George Hay Follow @gfhay

The troubled UK pubs company s fiddly open offer should help it deal with its most pressing problem the need to repay £215m of convertible bonds by the end of next year. But Punch still faces an uphill struggle to protect its complex securitised structure as the downturn bites.

This content is for Subscribers only

Context News

Punch Taverns is to raise £350m of new capital, divided equally between a firm placing and an offer that existing shareholders are entitled to claw back.

The proceeds are to be used to fund the purchase of the pubs company remaining £215m stock of convertible bonds, which are due to be repaid by December next year.

Punch also announced that ongoing low demand meant earnings before interest, tax, depreciation and amortisation in its 7000 leased pubs had fallen 11.2% in the nine months to the end of May.

However, it also announced it was on track to meet its expectations for the financial year. The company said that trading performance in the third quarter showed early indications that actions to stabilise performance were seeing some success

Disposal proceeds in the same period amounted to £171m, and gross debt fell by £404m.

Context News

Punch Taverns is to raise £350m of new capital, divided equally between a firm placing and an offer that existing shareholders are entitled to claw back.

The proceeds are to be used to fund the purchase of the pubs company remaining £215m stock of convertible bonds, which are due to be repaid by December next year.

Punch also announced that ongoing low demand meant earnings before interest, tax, depreciation and amortisation in its 7000 leased pubs had fallen 11.2% in the nine months to the end of May.

Disposal proceeds in the same period amounted to £171m, and gross debt fell by £404m.

Email a friend

Please complete the form below.

Required fields *