Bay Restaurant Group refinances in a debt-for-equity swap

The Bay Restaurant Group, the owner of the La Tasca and Slug and Lettuce chains, has undergone a refinancing involving a debt-for-equity swap.

The company, which was previously part of the Laurel Pub Company, has agreed terms with Icelandic bank Kaupthing and Commerzbank of Germany on a financial restructure that will reduce its debts by £150m.

The deal, which suggests the banks are unwilling to force a sale of the company assets, marks Bay’s second restructure in 18 months.

Last year, two of the group’s three brands, Slug & Lettuce and Ha! Ha! Bar and Grill, which were then owned by Robert Tchenguiz, were part of a pre-pack administration which divided the business into two — Bay and the Town & City Pub Company.

Tchenguiz ceased to have any involvement in either business in March this year.

Bay chief executive Paul Symonds said the company was delighted to have secured supportive refinancing.

“Our brands have continued to trade well in spite of widely documented challenging market conditions,” he added.

“This transaction will enable us to continue to invest and grow our business, incentivise and motivate our management team and staff, and firmly provides the group with the opportunity to continue to outperform in our market.”

Bay, which operates 190 restaurants, generates approximately £25m of EBITDA a year. Over the last two years the group has invested over £15m across three brands.

Robert Tchenguiz buys back Laurel pubs leases >>

Laurel Pub Company creditors face £130m loss >>

Laurel rescued from administration >>

By Kerstin Kühn

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