Young’s pub chain to secure extra £100m financing to survive coronavirus crisis
Pub chain Young’s said it is in the process of securing an additional £100m of financial headroom to help sustain the business throughout the coronavirus crisis.
The company said it has issued paper with a value of £30m and a maturity date of 13 May 2021 under the government’s Covid Corporate Financing Facility.
It is also in the process of finalising a new £50m syndicated term loan facility with Natwest and HSBC which will be used to repay an existing facility with Barclays and RBS.
Young’s is also planning to secure a new £20m revolving credit facility with Natwest.
The new financing arrangements brings Young’s total funds and committed facilities to £285m, as well as a £10m overdraft with HSBC.
“With the group’s strong balance sheet, supplemented by the actions announced today, the company’s board of directors is confident that Young’s has sufficient liquidity to handle a prolonged period of closure of its pubs,” Young’s said in a statement this morning.
“The board expects the company to be in a position to return to profitable growth when this unprecedented period is at an end and conditions allow.”
The majority of the company’s workforce have been furloughed under the government’s coronavirus job retention scheme, with just 29 employees still working during the crisis. Young’s closed all of its pubs in March after the government announced the UK coronavirus lockdown.
Pubs will not be able to reopen until July at the earliest, the government announced on Monday.
The pub chain will publish its full-year results on 4 June, instead of 21 May.