The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Greene King takes securitisation a step further

UK pub retailer Greene King has closed an innovative securitisation that allows it unprecedented operational flexibility while reducing its funding costs.

The £600 million ($1.13 billion) deal securitises 904 of Greene King's managed and tenanted pubs – the only deal on the market to include both assets – but is structured to allow for transfers in and out of that portfolio. This gives the company more operational flexibility than a usual whole business securitisation while still maintaining controls that satisfy rating agencies and investors.

RBS lead managed the deal, advised by law firm Freshfields Bruckhaus Deringer. The company was advised by law firm Linklaters.

Linklaters partner James Harbach said: "The transaction was unique in that it involved the securitisation of both tenanted and managed estates, some of which formed part of the Laurel pub estate recently acquired by Greene King and unlike other pub securitisations, Greene King acts as intermediary supplier of products but also brews and supplies its own beer."

Marcus Mackenzie, the partner who led Freshfields on the deal, said: "Greene King has opened up a significant source of cheaper funding through the capital markets, allowing them to reduce their funding costs substantially."

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree