REG - Restaurant Group PLC - Amendment and extension of Debt facilities

RestaurantAnnouncement

22/12/2022 13:45

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RNS Number : 6626K  Restaurant Group PLC  22 December 2022

The Restaurant Group plc

 

 

Amendment and extension of Debt facilities

 

The Restaurant Group plc ("Group" or "TRG") is pleased to announce it has
successfully amended and extended its debt facilities.

 

The revised £340 million package comprises a £220 million Term Loan Facility
(the "Term Loan") and a £120 million Revolving Credit Facility (the "RCF")
with its existing lenders.  This represents a c. £21m early repayment of its
previous facilities.  TRG continues to have a strong liquidity position with
over £140m of cash headroom(1).

 

This provides the Group with an additional two years of debt facilities with
the maturities of the Term Loan and the RCF extended to April 2028 and March
2027, respectively.

 

The covenant package provides additional covenant headroom for the Group until
March 2025.  For the next financial year, the Group's net leverage covenant
(as measured on a pre-IFRS 16 basis) shall be set at 5.0x for the June 2023
covenant test (previous position 4.5x) and 4.75x for the Dec 2023 covenant
test (previous position 4.0x).

 

As already reported, TRG has previously purchased interest rate caps as
follows:

 

o  On £125m of debt limiting the SONIA base rate to 0.75% effective from
November 2022 to November 2025; and

o  On £100m 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.

 

 

(1)Cash headroom as at 21 December 2022. Minimum liquidity requirement of
£40m

 

 

Enquiries:

 

 The Restaurant Group plc                    Tel: +44(0) 203 117 5001

 Andy Hornby, Chief Executive Officer

 Kirk Davis, Chief Financial Officer

 Umer Usman, Investor Relations
                                             Tel: +44(0) 203 128 8742

 MHP Communications (Financial PR adviser)
 Oliver Hughes / Simon Hockridge

 

 

Notes:

1.    The Restaurant Group plc operates approximately 420 restaurants and
pub restaurants throughout the UK. Its principal trading brands are Wagamama,
Frankie & Benny's and Brunning & Price.  It also operates a
multi-brand Concessions business which trades principally in UK airports.
In addition, the Wagamama business has a 20% stake in a JV operating five
Wagamama restaurants in the US and over 50 franchise restaurants operating
across a number of territories.

 

 

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