Mitchells & Butlers PLC 06 November 2003 NOT FOR DISTRIBUTION IN THE UNITED STATES MITCHELLS & BUTLERS PLC £1.9BN SECURITISATION Mitchells & Butlers today announces that the terms of the securitisation of Mitchells & Butlers Retail Limited have been finalised. The total amount to be raised is £1.9bn and the cash interest cost of the securitised debt will be 6.0%. The net proceeds of the securitisation will be used principally to repay the Group's existing borrowings and to return £500m to shareholders. Commenting on the issue, Karim Naffah, Finance Director said: "The securitisation represents a cost-effective, long term, fixed rate financing structure for Mitchells & Butlers. The level of debt and the agreed terms will provide the flexibility we need to support our strategy of owning and developing high take, high quality, managed pubs, in the best interests of our shareholders and our bond holders." Timetable A further announcement will be made at the close of the securitisation, which is anticipated to be next week. A circular will then be posted to shareholders with full details of the proposed return of £500m to shareholders by way of a special dividend of 68 pence per share and the associated consolidation of the number of shares in issue. The consolidation will be put to shareholders at an Extraordinary General Meeting which, on the basis of the current timetable, is expected to be on 1 December. The detail of the securitisation is as follows: Class A1 Amount: 200 million pounds Legal Maturity Date: December 2030 Expected Maturity Date: December 2010 Coupon: £ Libor + 45 basis points Ratings: AAA (S&P) / AAA (Fitch) / Aaa (Moody's) Class A2 Amount: 550 million pounds Legal Maturity Date: December 2030 Expected Maturity Date: December 2028 Coupon: 5.574% Ratings: AAA (S&P) / AAA (Fitch) / Aaa (Moody's) Class A3 Amount: 418.75 million dollars (equivalent to 250 million pounds) Legal Maturity Date: December 2030 Expected Maturity Date: December 2010 Coupon: $ Libor + 45 basis points Ratings: AAA (S&P) / AAA (Fitch) / Aaa (Moody's) Class B1 Amount: 350 million pounds Legal Maturity Date: December 2025 Expected Maturity Date: December 2023 Coupon: 5.965% Ratings: A (S&P) / A (Fitch) Class B2 Amount: 350 million pounds Legal Maturity Date: December 2030 Expected Maturity Date: December 2028 Coupon: 6.013% Ratings: A (S&P) / A (Fitch) Class C1 Amount: 200 million pounds Legal Maturity Date: September 2032 Expected Maturity Date: September 2030 Coupon: 6.469% Ratings: BBB+ (S&P) / BBB+ (Fitch) Common Terms Arrangers: The Royal Bank of Scotland Lead Managers: The Royal Bank of Scotland and Citigroup Notes: All bonds pay quarterly All floating rate and currency rate exposures will be hedged through swaps to ensure all of the securitised debt costs to the Company are fixed. For further information, please contact: Investor Relations Kate Holligon 0121 498 5092 Media Jeremy Probert 0121 498 5547 Finsbury Group - James Murgatroyd 020 7251 3801 Cautionary note regarding forward-looking statements This update contains certain forward-looking statements as defined under US law (Section 21E of the Securities Exchange Act of 1934). These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as "target", "expect", "intend", "believe" or other words of similar meaning. By their nature, forward-looking statements are inherently predictive, speculative and involve risk and uncertainty. There are a number of factors that could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. Factors that could affect the business and the financial results are described in Item 3 Key Information - Risk Factors in the Mitchells & Butlers plc Form 20-F filed with the United States Securities and Exchange Commission on 28 March 2003. This document is not an offer of securities for sale in the United States. The securities referred to herein may not be offered or sold in the United States or to or for the account of benefit of US persons (as such terms are defined in Regulation S under the US Securities Act of 1933) unless registered under the Securities Act or pursuant to an exemption from such registration. There will be no public offer of the securities in the United States. -ends- This information is provided by RNS The company news service from the London Stock Exchange