REG - Tortilla Mexcn.Grill - Debt Refinancing and Board Change

Tortilla Mexican GrillAnnouncement

Tue 13:30

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RNS Number : 2152O  Tortilla Mexican Grill PLC  24 June 2025

 

24 June 2025

Tortilla Mexican Grill plc ("Tortilla", the "Group" or the "Company")

 

Refinancing of debt facilities and Board changes to support next phase of
growth

 

Tortilla Mexican Grill plc today announces that it has entered into a new,
enlarged funding facility with its long-standing banking partner, Santander UK
plc. The Company also announces that Maria Denny will step down from the Board
and as Chief Financial Officer as it enters the next phase of its development.

 

Refinancing of existing debt facilities

 

Tortilla is pleased to announce that it has entered into a new financing
arrangement with Santander UK plc to refinance and extend the existing debt
facilities.

 

Under the terms of the refinancing, the Company has agreed a new £12.5
million Senior Facility Agreement, replacing the existing £10.0 million
facility which was due to mature on  14  September 2026.

 

The key terms of the refinancing are as follows:

 

·      Facility size: £12.5 million (£2.5 million of which is an
overdraft facility)

·      Term: 3 years to 23 June 2028 with an extension option where the
termination date can be extended by a further year on up to two occasions

·      Interest rate: determined as SONIA plus margin range between
2.75% - 4.00% based on net leverage ratio(1):

·      Financial covenants: Net leverage ratio and fixed charge cover

·      Repayment: facility is repayable in one sum at the end
termination date

·      Security: a new France share pledge added to the existing
security arrangements

At 24 June 2025, the Company holds additional bank debt facilities in France
of €1.03 million which were rolled over as part of the acquisition of Fresh
Burritos in 2024. The Company's available debt facilities therefore total
£13.4 million at the Group level.

This enhanced facility will strengthen the Group's balance sheet and provide
additional flexibility to support UK growth through targeted investment in
technology and brand marketing. It will also enable the refurbishment and
rebranding of the sites acquired in France last year, which will relaunch
under the Tortilla brand.

 

There are no changes to the Company's current guidance.

 

1                     net leverage ratio calculated as the
ratio of net debt to Adjusted EBITDA (pre-IFRS 16).

2 fixed charge cover calculated as the ratio of EBITDAR to fixed charges.
EBITDAR defined as Adjusted EBITDA before rent. Fixed charges defined as
finance charges plus rent.

CEO, Andy Naylor, commented:

"We are delighted to extend our 13 year relationship with Santander. The
refinancing enables us to invest further in growth initiatives that have been
yielding success in our UK business and to accelerate the launch of Tortilla
into the European market, starting with France."

 

 

Board change - Chief Financial Officer

 

The Company also announces that Maria Denny, Chief Financial Officer and
Executive Director, has informed the Board of her intention to step down from
the Board and leave the Company, effective 30 September 2025.

The Board has initiated a formal search process to identify a successor. In
the interim, Josie Whelan, currently Head of Commercial Finance, will be
appointed non-Board interim CFO and will work alongside Maria to ensure an
orderly handover and seamless transition before Maria's departure.

 

CEO, Andy Naylor, commented:

 

"On behalf of the Board, I would like to thank Maria for her significant
contribution to Tortilla particularly during our recent refinancing process
and financially steering the business through the acquisition of Fresh
Burritos and our growth initiatives in the UK. We wish Maria all the best in
her future endeavours".

 

CFO, Maria Denny, commented:

"It has been a privilege to serve as CFO of Tortilla. I'm proud of what we
have achieved, and I look forward to monitoring the future success of the
Company as it enters its next phase of growth."

 

 

 

 

ENQUIRIES

 

 Tortilla Mexican Grill PLC                                 Via Eggmedia
 Emma Woods, Non-Executive Chair
 Andy Naylor, CEO

 Panmure Liberum Limited (Nominated Adviser, Sole Broker)   Tel: 020 3100 2222
 Andrew Godber
 Edward Thomas
 Nikhil Varghese

 Eggmedia Ltd (Public Relations)                            Tel: 07710 571452

 Ian Edmondson                                              egg@eggmediapr.com (mailto:egg@eggmediapr.com)
 Ross Gow                                                   ian@eggmediapr.com (mailto:ian@eggmediapr.com)

For further information, visit tortillagroup.
(https://mexicangrilltortilla-my.sharepoint.com/personal/mdenny_tortilla_co_uk/Documents/Various/tortillagroup.co.uk)
co.uk

 

NOTES TO EDITORS

 

About Tortilla Mexican Grill plc

 

Founded in 2007 by a San Francisco duo, Tortilla is Europe's largest
fast-casual Mexican restaurant brand. With 81 UK locations (of which 14 are
franchise stores), 27 in France (of which 14 are franchise stores) and 12
franchise stores in the Middle East, Tortilla serves 7 million+ meals
annually, offering authentic California-style burritos, tacos and salads.

Through the acquisition of Chilango in the UK in 2022 and Fresh Burritos in
France in 2024, as well as franchise partnerships with SSP Group plc, Compass
UK & Ireland and Eathos, the brand continues to expand globally.

Tortilla breaks the mold of typical takeaways, combining quick service with
quality ingredients to serve affordable, made-to-order meals in under 90
seconds, in cosy environments fitting for lunch or dinner and a beer with
friends. The menu is fully customisable - there are thousands of flavour
combinations to try - with produce that's fresh, never frozen, 70% plant-based
and vegan- friendly, higher welfare meats and free from artificial flavours or
preservatives.

Emphasising sustainability, Tortilla only uses recycled and recyclable
packaging, 100% renewable electricity and sends zero waste to landfill.

Headquartered in London and listed on the London Stock Exchange (LSE: MEX),
Tortilla employs over 1,200 people.

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