GBP 1.9bn Securitisation
Mitchells & Butlers PLC
06 November 2003
NOT FOR DISTRIBUTION IN THE UNITED STATES
MITCHELLS & BUTLERS PLC
£1.9BN SECURITISATION
Mitchells & Butlers today announces that the terms of the securitisation of
Mitchells & Butlers Retail Limited have been finalised. The total amount to be
raised is £1.9bn and the cash interest cost of the securitised debt will be
6.0%. The net proceeds of the securitisation will be used principally to repay
the Group's existing borrowings and to return £500m to shareholders.
Commenting on the issue, Karim Naffah, Finance Director said:
'The securitisation represents a cost-effective, long term, fixed rate financing
structure for Mitchells & Butlers. The level of debt and the agreed terms will
provide the flexibility we need to support our strategy of owning and developing
high take, high quality, managed pubs, in the best interests of our shareholders
and our bond holders.'
Timetable
A further announcement will be made at the close of the securitisation, which is
anticipated to be next week.
A circular will then be posted to shareholders with full details of the proposed
return of £500m to shareholders by way of a special dividend of 68 pence per
share and the associated consolidation of the number of shares in issue. The
consolidation will be put to shareholders at an Extraordinary General Meeting
which, on the basis of the current timetable, is expected to be on 1 December.
The detail of the securitisation is as follows:
Class A1
Amount: 200 million pounds
Legal Maturity Date: December 2030
Expected Maturity Date: December 2010
Coupon: £ Libor + 45 basis points
Ratings: AAA (S&P) / AAA (Fitch) / Aaa (Moody's)
Class A2
Amount: 550 million pounds
Legal Maturity Date: December 2030
Expected Maturity Date: December 2028
Coupon: 5.574%
Ratings: AAA (S&P) / AAA (Fitch) / Aaa (Moody's)
Class A3
Amount: 418.75 million dollars (equivalent to 250 million
pounds)
Legal Maturity Date: December 2030
Expected Maturity Date: December 2010
Coupon: $ Libor + 45 basis points
Ratings: AAA (S&P) / AAA (Fitch) / Aaa (Moody's)
Class B1
Amount: 350 million pounds
Legal Maturity Date: December 2025
Expected Maturity Date: December 2023
Coupon: 5.965%
Ratings: A (S&P) / A (Fitch)
Class B2
Amount: 350 million pounds
Legal Maturity Date: December 2030
Expected Maturity Date: December 2028
Coupon: 6.013%
Ratings: A (S&P) / A (Fitch)
Class C1
Amount: 200 million pounds
Legal Maturity Date: September 2032
Expected Maturity Date: September 2030
Coupon: 6.469%
Ratings: BBB+ (S&P) / BBB+ (Fitch)
Common Terms
Arrangers: The Royal Bank of Scotland
Lead Managers: The Royal Bank of Scotland and Citigroup
Notes: All bonds pay quarterly
All floating rate and currency rate exposures will be hedged through swaps to
ensure all of the securitised debt costs to the Company are fixed.
For further information, please contact:
Investor Relations
Kate Holligon 0121 498 5092
Media
Jeremy Probert 0121 498 5547
Finsbury Group - James Murgatroyd 020 7251 3801
Cautionary note regarding forward-looking statements
This update contains certain forward-looking statements as defined under US law
(Section 21E of the Securities Exchange Act of 1934). These forward-looking
statements can be identified by the fact that they do not relate only to
historical or current facts. Forward-looking statements often use words such as
'target', 'expect', 'intend', 'believe' or other words of similar meaning. By
their nature, forward-looking statements are inherently predictive, speculative
and involve risk and uncertainty. There are a number of factors that could cause
actual results and developments to differ materially from those expressed in or
implied by such forward-looking statements. Factors that could affect the
business and the financial results are described in Item 3 Key Information -
Risk Factors in the Mitchells & Butlers plc Form 20-F filed with the United
States Securities and Exchange Commission on 28 March 2003.
This document is not an offer of securities for sale in the United States. The
securities referred to herein may not be offered or sold in the United States or
to or for the account of benefit of US persons (as such terms are defined in
Regulation S under the US Securities Act of 1933) unless registered under the
Securities Act or pursuant to an exemption from such registration. There will
be no public offer of the securities in the United States.
-ends-
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