In an endeavor to alleviate its hefty £4 billion ($4.9 billion) debt burden, Stonegate Pub Co. is considering the sale of approximately 1,000 pubs to Cerberus and Morgan Stanley Real Estate, according to a report by The Times on Sunday. With half of this debt maturing by July 2025, the British chain is seeking financial relief measures due to escalating interest rates that have intensified refinancing costs.
The company's advisers, Barclays and Eastdil, are currently evaluating the bids. They may grant one bidder exclusivity if bids are satisfactory, however, the proposal could be discarded if the offers do not meet expectations.
In addition to potential sales, Stonegate is also exploring the possibility of establishing a special-purpose vehicle as an alternative method to generate external debt. This decision is part of a broader strategy to manage its financial obligations amidst a challenging economic environment characterized by rising interest rates.
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