A&O Shearman advised on Punch Pubs’ GBP640 million high-yield bond, tender offer, and loan refinancing

The refinancing comprised (i) the issuance of GBP640m 7.875% senior secured notes due 2030, (ii) a concurrent tender offer for the company’s existing GBP600m 6.125% senior secured notes due 2026, and (iii) an extension and upsize to GBP85m of the super senior revolving facilities agreement by special purpose finance and holding companies of Punch Pubs, a leading UK pub company of which Fortress Investment Group is the principal shareholder. As a result of the refinancing, Punch Pubs has successfully extended its senior secured debt maturities from 2026 to 2030.

Punch Pubs used the net proceeds from the bond issuance and cash on the balance sheet to repurchase the notes tendered in the tender offer, redeem any notes outstanding, and repay certain indebtedness, including outstanding amounts under the company’s existing super senior revolving facilities agreement.

Trevor Ingram, lead partner, A&O Shearman said: “We are proud to have worked on this landmark refinancing deal for Punch Pubs. This transaction demonstrates the continued strength and resilience of the UK pub sector and highlights the confidence of the market in Punch Pubs’ long-term strategy. The successful extension and upsize of the company’s debt facilities will provide a robust platform for future growth and investment.”

The A&O Shearman deal team advising on the bond issuance included high yield partner Trevor Ingram, senior associate Evangelia Andronikou, and associates Irene Mainar Borao, Sonali Sharma and Georges Haddad.

The A&O Shearman team advising on the super senior revolving facilities agreement included debt finance partner Filippo Crosara, counsel Alex Charles, senior associate Jeane Benny, associate Ellen Liu and trainee Jasleen Sidhu.