Amendment and extension of Debt facilities

RNS Number : 6626K

Restaurant Group PLC

22 December 2022

 

The Restaurant Group plc

Amendment and extension of Debt facilities

The Restaurant Group plc ("Group" or "TRG") is pleased to announce it has successfully amended and extended its debt facilities.

The revised £340 million package comprises a £220 million Term Loan Facility (the "Term Loan") and a £120 million Revolving Credit Facility (the "RCF") with its existing lenders.  This represents a c. £21m early repayment of its previous facilities.  TRG continues to have a strong liquidity position with over £140m of cash headroom¹.

This provides the Group with an additional two years of debt facilities with the maturities of the Term Loan and the RCF extended to April 2028 and March 2027, respectively.

The covenant package provides additional covenant headroom for the Group until March 2025 .  For the next financial year, the Group's net leverage covenant (as measured on a pre-IFRS 16 basis) shall be set at 5.0x for the June 2023 covenant test (previous position 4.5x) and 4.75x for the Dec 2023 covenant test (previous position 4.0x).

As already reported, TRG has previously purchased interest rate caps as follows:

o  On 125m of debt limiting the SONIA base rate to 0.75% effective from November 2022 to November 2025; and

o  On 100m of debt limiting the SONIA base rate to 0.75% effective from November 2025 to November 2026.  

These caps reduce the risk of interest rate changes on our debt over the next four years.

¹ Cash headroom as at 21 December 2022. Minimum liquidity requirement of £40m

Enquiries:

The Restaurant Group plc Andy Hornby, Chief Executive Officer  Kirk Davis, Chief Financial Officer Umer Usman, Investor Relations	Tel: [phone]
MHP Communications (Financial PR adviser) Oliver Hughes / Simon Hockridge	Tel: [phone]

Notes:

1.  The Restaurant Group plc operates approximately 420 restaurants and pub restaurants throughout the UK. Its principal trading brands are Wagamama, Frankie & Benny's and Brunning & Price.  It also operates a multi-brand Concessions business which trades principally in UK airports.  In addition, the Wagamama business has a 20% stake in a JV operating five Wagamama restaurants in the US and over 50 franchise restaurants operating across a number of territories.

 

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