Securitisation and debt information
Our whole business securitisation comprises around £1.66 billion of debt as at October 2019 in the form of tradeable, listed bonds secured over the assets and cashflow of the majority of the business.
You can find our debt reports in the information centre.
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 6.1%.
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.
On 12 June 2020, the Group announced revised financing arrangements that had been agreed with our main creditors to provide a platform of both additional liquidity and improved financial flexibility in order to meet the challenge presented by Covid-19. This is represented by £100m of CLBILs and revolving credit facilities of which £10m was drawn at the balance sheet date.
In addition, as part of the revised financing arrangements, certain amendments and waivers were agreed within the Group securitisation to provide stability and flexibility to the Group in order to manage the Secured Financing structure. These arrangements are summarised in the notes to the accounts.
In securing these valuable amendments the Group has agreed not to pay an external dividend, undertake any share buy-backs or repurchase bond debt until the end of the financial year to September 2021, at the earliest.