Greene King secures new debt facility

4th Apr 2011 07:46

Pub group and brewer Greene King has agreed a new debt facility with its lenders that will help it finance its expansion plans over the next five years.The new £400m revolving credit facility starts this year and lasts for five years. It replaces an existing £400m facility that was due to expire in April 2012.Greene King said that, given the previous facility was agreed in early 2007 when more attractive margins were available, the new facility will increase its annual interest costs by about £2.5m a year. It is expected to result in a blended interest rate of about 6.1%."This new facility gives Greene King continued financial flexibility and helps underpin the ongoing delivery of our Retail expansion and overall growth strategy," the company said.Greene King, which brews beers such as Old Speckled Hen and Abbot Ale and serves them in its pubs, said in December that it plans to grow its managed pubs and restaurants business to about 1,100 outlets from 900 currently in the next five years. Most recently the company acquired Northern England- and Midlands-focused pub restaurant group Cloverleaf, to which it intends to add at least 10 new sites in the next two years.RG