Stonegate secures refinancing package

Stonegate Group has secured a debt refinancing package following positive discussions with bondholders and private equity owner TDR Capital, who are investing £250m into the bar operator.

 

It comes after the UK’s largest pub company revealed in December 2023 plans to refinance its portfolio of 1,034 pubs.

 

Stonegate had been undergoing a strategic review the past year and said in February 2023 that it was looking to sell around 1,000 of its sites.

 

The group reported a pre-tax loss of £233m in the year to 26 September 2021 after pandemic restrictions hit trading, down from a £746m loss the in the previous 12 months.

 

In July last year, the group also announced it will restructure its “central functions and operations management teams”, with around 260 redundancies planned.

 

In its half year results to 7 April 2024, Stonegate reported an 8% rise in adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) to £196m, excluding Euros trade.

 

David McDowall, chief executive of Stonegate Group, said: “We have always said we would achieve the right outcome on our refinancing requirements, and I am delighted we can now move forward with confidence and certainty, having achieved our balance sheet goals.

 

“The new agreement enables us to really focus on driving performance across all our divisions, and delivering on our strategy which is now having a material impact on our overall profitability.”

 

He added: “I would like to thank our lenders for the positive way we have reached these agreements and TDR for their continued support. Most importantly, I would like to thank Stonegate colleagues for their continued dedication, commitment and passion which has seen us navigate a difficult few years. We are now in a really strong position to deliver on our longer-term objectives.”

 

Stonegate was founded in 2010 with 333 pubs, and now has over 4,500 sites under brands such as Slug and Lettuce and Be At One.

 

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