Caffe Nero plots growth after £140m refinancing

by Neil Gerrard, Tuesday 11th January 2011 13:54

Caffè Nero has completed a successful £140m refinancing in a bid to fund the business's future growth ambitions.

The business, which has 500 outlets in the UK and internationally and has registered 54 consecutive quarters of positive like-for-like growth, is forcast to generat £31m in earnings before interest, tax, depreciation and amortisation (EBITDA) for the 12 months to May 2011. Revenue for the same period is forecast to reach £171m, an increase of 11% on the previous year.

The group has plans to return to its pre-recession growth rate of 52 stores in the UK per year. It also plans to open 40 stores a year internationally.

The refinancing was supported by syndicate of lenders. The senior debt syndicate was led by Lloyds with support from Carlyle, Rabobank and Co-op Bank providing a total of £90m. The junior debt syndicate was led by Hutton Collins Partners LLP with support from Goldman Sachs European Special Situations Group and Bayside Capital financing a total of £50m of funding.

The Group will remain a family-controlled business. The Ford family controls 60% of the equity, with private equity firm Paladin holding 30% and management holding the remaining 10%.

Gerry Ford, chairman of Caffè Nero, commented: "I am delighted to announce the successful refinancing of the Group. The new financial structure provides the Group with a financial platform more appropriate for its growth ambitions as we continue with our expansion plans and accelerate our roll out, both in the UK and internationally.

"The support from our new syndicate of banks and funds is encouraging and firm recognition of Caffè Nero's ongoing brand appeal as we continue to expand into new formats and new markets. Current trading is encouraging and the Directors remain confident of the future prospects for the Group."

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By Neil Gerrard


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