Marston's PLC COVID-19 Update re: Noteholder Consent Request (1692R)
March 04 2021 - 2:07AM
UK Regulatory
TIDMMARS
RNS Number : 1692R
Marston's PLC
04 March 2021
4 March 2021
Marston's PLC
("Marston's" or "the Group")
COVID-19 Update re: Noteholder Consent Request
As previously announced in May and November last year, the Group
received overwhelming support from its bondholders for certain
waivers and amendments for 2020 within its Secured Estate, due to
the Government's mandate to temporarily close or otherwise restrict
the operations of pubs and restaurants across the UK in response to
the COVID-19 pandemic.
In November last year, the Group had assumed that the UK
government and devolved administrations would allow pubs and other
hospitality venues to open from 2 December 2020 through to the
Spring of 2021, albeit subject to continued tiered and other
restrictions across the UK and possible short lockdowns. However, a
third, strict national lockdown ensued, forcing the closure of all
of the pubs in the Secured Estate across England and Wales from 20
December 2020 onwards, with no pre-specified end date.
As a result of this, Marston's announces today that it has
formally asked the holders of its Secured Class A Notes for a
limited number of further technical waivers of its financial
covenant for the second half of 2021 and until January 2022, to
cater for the lockdown since 20 December and the significant
restrictions that are likely to be in place on pubs, as per the
government's announcement of 22 February, until 21 June 2021 at the
earliest. It is also seeking an extension of certain other
technical waivers and amendments which were agreed to by the
holders of its Secured Class A Notes in May last year. The
waivers/amendments being requested are required solely as a
consequence of the enforced temporary re-closure of its pubs in
England, Scotland and Wales by the UK government and the devolved
administrations, as a result of the COVID--19 pandemic measures.
Noteholders have been asked to respond by 24 March and a meeting is
scheduled for 26 March 2021.
The financial and liquidity position of Marston's and its
subsidiaries remains sound. As previously announced, the Group had
GBP176m of headroom under its bank facilities as at 2 January 2021.
Bondholders also benefit from the GBP120m Liquidity Facility which
is expected to be only around GBP30m drawn at its peak .
Marston's is confident that demand in its pubs will be strong
once allowed to fully re-open (albeit with restrictions). As
previously reported, the pubs performed well last Summer after the
first lockdown, outperforming the market in the 13 weeks to 3
October 2020 with like for like sales at the Group's managed and
franchised pubs 90% of the previous financial year during the
corresponding period.
ENQUIRIES:
Marston's PLC Tel: 01902 329516 Instinctif Partners Tel: 020
7457 2010/2005
Ralph Findlay, Chief Executive Justine Warren
Officer
Andrew Andrea, Chief Financial Matthew Smallwood
and
Corporate Development Officer
NOTES TO EDITORS
-- Marston's is a leading pub operator with a 40% holding in Carlsberg Marston's Beer Company
-- It operates an estate of around 1,500 pubs situated
nationally, comprising managed, franchised and leased pubs
-- Marston's employs around 11,000 people
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