Bloomberg News

Punch Taverns Seeks to Restructure Mortgage-Backed Bond Issues

October 24, 2012

Punch Taverns (PUB), which owns more than 4,500 U.K. pubs, is in discussions with shareholders as it prepares to restructure 2.4 billion pounds ($3.8 billion) of mortgage-backed bonds, it said today in an earnings statement.

The Staffordshire, England-based company has two bond issues that would need to be restructured “to protect the material financial and operational benefits that both enjoy” as part of the Punch group, according to the statement.

“Discussions have been initiated with certain major shareholders and other significant stakeholders to seek their input on the range of possible options available to restructure the securitizations,” Punch said.

The company reported earnings before interest, taxes, depreciation and amortization of 238 million pounds in the year ending Aug. 18, lower than last year’s 258 million pounds. It sold 475 pubs over the year. Punch rose 2 percent to 6.55 pence at 11:00 a.m. in London.

Punch Taverns began restructuring its business last year to cope with falling sales and high debt levels. Advised by Blackstone Group LP and Goldman Sachs Group Inc., it spun off its Spirit division in August 2011 and has said it wants to cut its ownership to 3,000 outlets.

To contact the reporter on this story: Tom Freke in London at tfreke@bloomberg.net

To contact the editor responsible for this story: Paul Armstrong at parmstrong10@bloomberg.net


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