COFFEE chain Caffe Nero announced that a £275m deal to refinance its debts had been completed yesterday.
The deal is split between £100m of senior debt instruments, £150m in mezzanine debt and £25m in capital expenditure. The firm say that they will expand abroad and in the UK, as well as releasing a new “at home” coffee range.
M&G investments said they would use the assistance of the government’s Business Finance Partnership to lend the chain £30m, which would be repaid over the next five years.
In the financial year ending in May 2013, Caffe Nero made £21.1m in profit before tax, an 11 per cent increase over 12 months.
“This new debt package allows us to move into some exciting new areas and to continue with our strong store growth both in the UK and abroad,” commented Gerry Ford, chairman of Caffe Nero.