Whitbread has announced that it has successfully priced two green bonds, the extension of its revolving credit facility (RCF), and its intention to repay private placement notes as the group undergoes a debt refinancing strategy.
The refinancing both maintains its “strong balance sheet and financial flexibility”, while also extending the maturity of its debt, according to the Premier Inn owner.
Some £300m worth of green bonds due May 2027 have been issued by the firm, while £250m of May 2031 green bonds have also been successfully placed.
The green bonds represent the firm’s “long-term commitment to sustainability”, as it aims to be a “force for good” for the entirety of the group’s stakeholder.
However, the impact of this £550m influx to the group’s combined gross debt and available facilities is largely offset by a number of costs associated with the debt restructuring.
These include a £235m reduction in its RCF from September 2022 and a proposed repayment of roughly £284m of private placement notes.
Nicholas Cadbury, finance director at Whitbread, said: “We thank our new bond investors and our relationship banks for their strong support for the group.
“The refinancing announced today demonstrates the strength of our underlying business, and is another key step in ensuring that we emerge from the crisis as a leaner, stronger and more resilient business.”