Partly Cloudy

Partly Cloudy

max temp: 19°C

min temp: 10°C

ESTD 1874 Search

The pigs have arrived. See the latest

Pigs Gone Wild

news here.

East Anglia: Punch shareholders to see stake slashed under debt-for-equity swap

13:04 27 May 2014

Shareholders in pubs group Punch Taverns would see their combined stake cut to just 15% under a debt-for-equity swap proposal.

Shareholders in pubs group Punch Taverns would see their combined stake cut to just 15% under a debt-for-equity swap proposal.

Shareholders in pubs group Punch Taverns could see their combined stake in the business cut to just 15% under a debt-for-equity swap, it emerged today.

The heavily indebted group has been attempting to negotiate a financial restructuring with its creditors for more than a year, but in Feburary called off a vote on its previous proposals amid opposition from key stakeholders.

Now, in a significant change from its previous approach, Punch is offering some junior noteholders under both the Punch A and Punch B debt securitisations a combination of not only cash and new junior notes but also new ordinary shares in the company.

In addition, some junior creditors would be invited to subcribe for ordinary shares at a “significant discount” to the current market price, in order to raise additional funds to repay junior notes under the Punch A securitisation.

Punch said the proposals were supported in principle by creditors who own or control around 34% of the A and B securitisations and more than 50% of junior notes in both securitisations and the group’s equity share capital.

However, it cautioned that: “Implementation of a consensual restructuring would require the consent of other parties outside of the stakeholder group, including shareholders, all classes of noteholders in Punch A and Punch B and other securitisation creditors. Accordingly, there can be no certainty that the proposals will proceed.”

Punch added that the proposals would “result in significant equity dilution for existing shareholders” who would be left with just 15% of the enlarged issued share capital.

If approved, the proposal will reduce Punch’s total net debt by £600million, leaving gross securitised debt of £1.582billion.

Punch added that extensions would also have to be sought to the covenant waivers agreed by A and B noteholders earlier this month as it would not be possible to complete the restructuring process by the current waiver deadline of June 30.

Punch is Britain’s second biggest pub owner with around 4,000 leased and tenanted pubs, including a signficant estate in East Anglia where, due to past mergers and acquisitions, it owns a number of former Tolly Cobbold pubs.

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

The Vitec, William Vinten Building in Western Way, Bury St Edmunds.

A major multinational company based in Bury St Edmunds has confirmed its intention to remain in the town as it leaves its old home of more than four decades.

Proposals are being put forward to build a school on the former BT depot site on Woodbridge Road in Ipswich.

A new primary school is being planned for Ipswich – and it is possible it could be built as soon as next year.

The MSC Oscar arriving at the Port of Felixstowe.
Photo: George Copping/citizenside.com

The Ipswich-based Mediterranean Shipping Company (UK) has reported increased revenue and profits for 2015.

Aqua 8 business guests special night

Award-winning Aqua Eight Fusion Restaurant and Bar in Lion Street, Ipswich, has hosted the first in a series of Random Acts of Kindness special social events to reward and thank the unsung heroes and heroines within the Ipswich business community.

Bernard Matthews is up for sale. Image: Bernard Matthews

Union Unite said it was a “worrying time” for Bernard Matthews employees, who were awaiting news of a possible sale of the company.

HOT JOBS

Show Job Lists

Most read

Most commented

Topic pages

Streetlife

Newsletter Sign Up

Sign up to the following newsletters:

Great British Life

Great British Life
MyDate24 MyPhotos24