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2h ago

Stonegate Explores £1 Billion Sale of 1,034 ‘Platinum’ Pubs as Non-Call Expiry Nears

The potential sale would target a debt pile above £3 billion built up in the 2019 Ei merger.

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Stonegate’s brands include the Slug & Lettuce and Be At One. It also owns, below, The Red Lion in Cranford, Northamptonshire

Overview

  • Executives have begun talks with advisers on options for the carved-out “platinum” estate, which industry sources value at up to £1 billion.
  • The Apollo £638 million securitisation carries a non-call period that ends in January, opening the door to sales or refinancing.
  • Management is considering selling the sites in large groups rather than as a single lot to widen buyer interest.
  • The pubs are all freehold, located across England and Wales, and are understood to generate about £90 million in EBITDA.
  • Stonegate reported a £214 million loss and £455 million in finance costs last year, holds more than £3 billion of debt, and was downgraded by Fitch to CCC+.