Restaurant Group gets amended £340 million debt facility package

By Marisa Wong

Los Angeles, Dec. 22 – Restaurant Group plc announced it amended and extended its debt facilities.

The revised £340 million package comprises a £220 million term loan and a £120 million revolver with its existing lenders, according to a press release.

This represents a roughly £21 million early repayment of the company’s previous facilities. The company said it continues to have a strong liquidity position with over £140 million of cash headroom.

This amendment provides the group with an additional two years of debt facilities with the maturities of the term loan and the revolver extended to April 2028 and March 2027, respectively.

In addition, the covenant package gives the company additional covenant headroom until March 2025. For the next financial year, the group’s net leverage covenant shall be set at 5.0x for the June 2023 covenant test (previously 4.5x) and 4.75x for the December 2023 covenant test (previously 4.0x).

As already disclosed, the company previously purchased interest rate caps as follows: on £125 million of debt limiting the Sonia base rate to 0.75% effective from November 2022 to November 2025; and on £100 million 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.

The British chain of restaurants and public houses is based in London.

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