Marston's extends banking facilities

Super-regional brewer and operator Marston's has agreed an extension to its banking facilities until August 2013.

The facility, agreed with a syndicate of banks, has a similar level of operational flexibility to existing arrangements and will reduce from £400m to £295m in August 2010.

The amount drawn on the current facility on 4 October was approximately £240m. The cost of its debt will rise from 6.1% to 6.3% under the new agreement.

Marston's said that its new facility along with its long-term securitisation of approximately £1.1bn and strong cash-flow would provide a sufficient level of financing.

"We are pleased to have formally agreed the extension to our bank facilities despite the difficult financing markets," said finance director Paul Inglett.

"This is testimony to the resilience of our business model and the strong cash generation of the business. The continued strong support of our relationship banks throughout the process has been critical in achieving the facility extension.

"This provides us with a flexible financing structure into the longer term which will allow us to continue to develop our business."