At Mitchells & Butlers, our borrowings consist of a whole business securitisation comprising around £2 billion of debt as at September 2012 in the form of tradeable, listed bonds secured over the assets and cashflow of the majority of the business.

Securitisation

In November 2003, we completed a £1.9bn securitisation of the majority of our UK pubs and pub restaurants at a cash interest cost of 6%. At the same time we returned £500 million to shareholders by way of a special dividend of 68 pence per share.

In September 2006, we raised £1.1bn via a bond issue to increase our securitised debt by £655m to £2.46bn and refinance existing Floating Rate Notes of £450m. The current cash interest cost is 5.8%.

The pubs within the securitisation are owned by Mitchells & Butlers Retail Limited, a 100% owned subsidiary of Mitchells & Butlers plc, which has a financial year end of end September in line with the Group. The performance of the securitisation pubs is reported half yearly on a quarterly basis in line with Mitchells & Butlers plc Interim and Final results in May and November respectively.