Pub chain reports growth as it offers £400m bond swap deal

Oliver Smith
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SPIRIT Pub Company yesterday reported profit growth of six per cent to £54m in the year to 17 August, along with a plan to ask bond holders to trade in their holdings for paper with longer due dates.

Spirit said the extended bonds would enable it to continue investments in its estate holdings.

The firm also announced it would increase its final dividend five per cent to 1.37p a share.

“I am pleased with the further progress we have made this year in what have been tough trading conditions,” said chief Mike Tye.

“Our continued focus on the execution of our strategy to deliver hospitality excellence for our guests has delivered a strong financial performance with growth of six per cent in profit before tax and earnings per share up nine per cent,” added Tye.

The company’s bond issuance is made up of £150m class A1 bonds due 2028 and £250m class A3 bonds due 2021. The firm has net debts of more than £700m.



LAWYERS at Slaughter and May – nominated for law firm of the year at next month’s City A.M. awards – advised Spirit on its debt re-profiling proposal, with financing partners Guy O’Keefe and Richard Jones leading the transaction alongside tax partner Sara Luder. O’Keefe also helped Punch Taverns refinance its business securitisation structures and advised the British government during the rescue of Northern Rock and Bradford & Bingley in 2008.