Stonegate reported benign figures on Friday. Our concerns that, following the restructuring, management would have some unexpected
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The equity nature of the new 2nd Lien facility does not impact creditors directly, but it underlines that getting the A&E away has
Read MoreThe completion of the Amend and Extend operation removes the maturity wall. Placing the £ SSNs at 10.75% will have stung for TDR, but they
Read MoreStonegate is dealing with its maturity wall and undertaking the required Amend and Extend (A&E) operation. Hold-out bondholders will get repaid at par and
Read MoreWho leaked our IM? £200m happens to be the precise requirement we modelled to reach the deal. We are hearing rumours / reading
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Papers are ablaze with derision that Stonegate have admitted their difficulty in refinancing their debt stack. All that happened yesterday is that the company had to
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We suspect more details will emerge on the call at 4 pm today, EBITDA has come in slightly higher than our model at £98m. The discrepancy is
Read MorePlease find our unchanged analysis here.
Stonegate has increased the number of pubs (from >1,000 versus c.800 originally) and raised only £600m (versus an original target of £1bn). This is partially explained by this transaction not being an outright sale, with Stonegate placing the pubs into an SPV,
Read MoreReports that Apollo is nearing a £630m loan deal with Stonegate. We are disappointed that the original £1bn proceeds to reduce debt, has now morphed into a
Read MoreLosing its founder and CEO from the beginning of 2024 is awkward timing given the
Read MoreThe pub portfolio sale is in trouble; Stonegate may have to retain the equity in the portfolio, and the debt will be expensive. There are press reports of bids from Cerberus and Morgan Stanley for the
Read MoreWe have had doubts about the potential pub sale, so we are not surprised that the transaction is evolving. Stonegate is seeking £1bn in proceeds. Originally,
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Revenue was in line with our model, and EBITDA margins were slightly ahead (23% vs. model at 21%). Stonegate attributed the better margins to lower energy costs. We had expected this to be
Read MoreDynamic pricing in pubs is not new, Happy Hour, 2-for-1 offers and half-price drinks are all aspects of price-led differentiation. Charging more at busy
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