Punch bondholders take up debt offer
A total of 82% of Punch bondholders have so far taken up the pubcos offer to repay a tranch of its debt.
Punch Taverns: offer to repay debt
Last week, the pubco offered to repay £90m of debt, held within one of Punch’s securitisations, known as "Punch A", allaying cashflow concerns and fears it may breach certain conditions attached to the "A" financing structure.
The company reported that all but two bondholders have taken up the offer.
It has extended the deadline for purchase of the bonds until 10 am on 8 October.
KBC Peel Hunt analyst Paul Hickman described the move last week as a “sensible, if limited, measure to utilise resources outside the securitisation to protect the assets inside the securitisation”.
He added: “However, it makes no difference to Punch’s overall debt position, which we regard as somewhat risky, and which requires a wider solution."
To Comment: Login or Register