Barracuda Group has confirmed that it has completed a successful refinancing and restructuring of the Group’s equity and debt structure.

Barracuda’s focus is on drinks-led retailing supported by a strong food operation. 2008 saw the Group continue with its expansion plans and grow its pub portfolio.  Today the Group operates 224 managed pubs across its five trading formats: Smith & Jones, Varsity, Barracuda Bar, Juniper and Cape.

Following a review of the Group’s funding, it has successfully restructured its debt arrangements in a transaction that injects new cash into the business and converts an element of debt into equity.  The restructuring was supported by all members of the existing lender syndicate and was led by Babson Capital Europe.

As a result of the refinancing, the level of debt with the business has reduced materially from £247m to £163m.  

Management remain significant shareholders in the business with 23% of the equity, with the balance being owned by the enlarged institutional shareholder group.  

Whilst the challenges of both the financial markets and the pub sector generally have been well documented over recent months, the Directors are encouraged that the successful refinancing and re-capitalisation of the business has been achieved, reflecting the clear, strong support for Barracuda’s portfolio of high quality pub assets, its strategy and management team.  The new strong, supportive and enlarged institutional shareholder group, alongside a materially lower debt level, positions the business strongly for future developments.

The sector as a whole continues to face challenging trading circumstances but current trading is stronger and more predictable than the last quarter of 2008.  Overall trading is encouraging and varies between different regions of the UK and between trading brands.  

Mark McQuater, Chief Executive of Barracuda, commented:

“I am delighted to announce the successful refinancing of the Group.  The new financial structure delivers fresh equity and much lower debt levels to the Group.  This provides a very firm base for exciting future developments.  The level of equity support for the Group is encouraging and is firm recognition of the strong business Barracuda has and its great future.”