Slug and Lettuce owner Stonegate is set to be rescued through a £250 million cash injection from private equity firms which include Asda owner TDR Capital.
TDR’s financing comes after Stonegate faced defaulting on its £3 billion debt pile, with the British investor sacrificing its stake to one of the pub group’s lenders.
Stonegate, which owns around 4,000 British pubs, previously warned that there was “material uncertainty” over the ability to continue as it attempted to refinance around £2.2 billion of its debt.
Today’s refinancing allows Stonegate to extend its borrowings until 2029, easing some of the pressures facing the company as it continues to navigate a difficult period due to the pandemic and cost of living crisis.
David McDowall, the chief executive of Stonegate, said: “We have always said we would achieve the right outcome on our refinancing requirements, and I am delighted we can now move forward with confidence and certainty, having achieved our balance sheet goals.”
Albacore Capital Group is one of the lenders included in the refinancing, with the private equity firm receiving a stake and a seat on the board in return for the cash injection.
TDR’s decision comes weeks after it took a controlling stake in Asda, with it now owning 67.5% of the supermarket due to Zuber Issa offloading his share.