Cafe Rouge and Belgo owner decides against refinancing plan

 
Alys Key
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French chain Cafe Rouge is one of the company's portfolio brands (Source: Getty)

The owner of Cafe Rouge and Las Iguanas has decided against a £160m refinancing plan after it failed to find attractive pricing on the bond market.

Casual Dining Group, which owns seven restaurant brands also including Belgo and Bella Italia, looked to the European bond market earlier this year to replace a debt package held with hedge funds including KKR.

But the plans were set aside after offers failed to meet the desired pricing target.

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Steve Richards, CEO, Casual Dining Group, said: “Growing and highly cash generative companies such as CDG will constantly look at financing options and we did indeed look at the European high yield bond market earlier in the year and whilst there was substantial interest, the pricing was not attractive enough to justify the expense of launching a formal process at that time.

"CDG continues to trade strongly, performing ahead of the market with near double digit revenue growth and like-for-like sales up three per cent in the five months since Christmas and with an improvement in the past two months. We continue to develop the business by investing in our core brands in the UK and expanding our franchise business in South Africa and the Middle East.”

Read more: Sales at London pubs and eateries grew in March while falling in wider UK

Last year the company's new openings and site growth brought in revenue of £299m, up 29 per cent on the previous year. But its pre-tax losses were £49.3m.

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